What prevents RCL Capital Management from cleaning out a clients account and moving to South America?
RCL Capital Management generally has the ability to access client accounts for the purpose of trading securities and the collection of quarterly fees. However, the amount that can be removed associated with quarterly fees is limited to a very small percentage of the total assets. Furthermore, RCL Capital Management is not the actual custodian of client accounts. Accounts are held at independent, third-party custodians such as TD Ameritrade who will not provide the account balance to anyone who is not the account owner (i.e. the client).
