The U.S. trust industry has transformed significantly over the past four decades, and top-tier U.S. jurisdictions, such as South Dakota, have emerged with powerful modern trust law concepts, revolutionizing the trust industry as they directly address and resolve inherent conflicts of interest and lack of control that families were forced to endure under the traditional, institutionalized trust company model.
Fueled by these exciting developments in modern trust law, independent trust companies that did not manage assets (such as Bridgeford Trust Company) offered a boutique, conflict-free, and non-institutionalized approach: a market-driven correction to a highly flawed trust industry. However, this new paradigm has attracted the attention of major international financial services “conglomerates” and private equity firms – all looking for a “piece of the action” and to capture, or in many instances, retain revenue going to independent trust companies in top-tier U.S. trust jurisdictions.
In this video, David Warren – Co-Founder and Chairman of Bridgeford Trust Company – discusses this transformation and new paradigm. He explains the negative impact of the large international financial conglomerates entering the trust industry and acquiring independent trust companies in top-tier jurisdictions, including recently in South Dakota: an unfortunate development for the U.S. trust industry as once independent trust companies created in the vein of a new paradigm have now become part of the problem they sought to remedy.
For more information on independent v. institutionalized trust companies and Bridgeford Trust Company’s commitment to the new paradigm, please contact us via our contact page or by calling (605) 224-9189.
