Folio Institutional

About Folio Institutional

Folio Institutional, now operating as Goldman Sachs Custody Solutions, was established as a division of Folio Financial, Inc., a company founded in 1998 by former Securities and Exchange Commission (SEC) Commissioner Steven M.H. Wallman and his wife, Kathleen Mary Harte Wallman. The company officially launched its initial product, FOLIO Investing, in 2000. Steven Wallman's background as an SEC Commissioner from 1994 to 1997 and a partner at the law firm Covington & Burling heavily influenced the company's direction. His focus on leveraging technology to benefit individual investors and simplify market processes was a core tenet of the firm's mission. A significant milestone in the company's history was its acquisition by Goldman Sachs, a deal that was announced in May 2020 and completed in September 2020, leading to its rebranding.

The firm operates as a brokerage, custodian, and financial technology company, primarily serving the Registered Investment Advisor (RIA) market. Its client base includes RIAs, small broker-dealers, banks, and credit unions. Folio Institutional's business model centers on providing execution, clearing, and custody services through a proprietary technology platform. This platform is designed to give financial advisors the tools to create and manage customized and diversified client portfolios in a scalable manner. Revenue is generated through fees for these custodial and clearing services. Following the acquisition, the business was integrated into Goldman Sachs' Global Markets Division to enhance trading volumes and provide greater liquidity.

Folio Institutional's key offering is its technology platform, which provides institutional-grade clearing and custody services. A distinctive feature of the platform is its support for dollar-based investing and fractional share trading, which allows for precise portfolio allocation regardless of share price. The service also features 'window trading,' a method that aggregates orders to be executed at specific times, designed for longer-term investors. Advisors can utilize the platform's model management capabilities to create, update, and sync investment models across numerous client accounts efficiently. The platform supports a wide array of account types, including individual, joint, IRA, and 401(k) accounts, and offers access to stocks, ETFs, and mutual funds. It also provides advisors with tools for tax management and direct client access to statements and reports.