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Regulatory Oversight

New Direction is a trusted provider of Custodial and Administrative services for traditional and Roth IRAs, HSAs, and other tax advantaged plans. Physical custody and administrative oversight is provided by Mainstar, in Kansas. The office of the State Bank Commissioners of Kansas regulates Mainstar and its oversight extends to New Direction's accounts.

The OSBC regulates all state-chartered banks and trust companies in Kansas with the primary objective of ensuring the safety and soundness of state-chartered financial institutions, thereby safeguarding depositors' assets and maintaining public confidence.

NDIRA is the agent (sometimes referred to as the administrator) for the custodian, Mainstar. Mainstar is a limited powers trust company regulated by the OSBC.

After substantial research and evaluation of other custodial options, NDIRA chose the regulatory oversight offered through Mainstar and the OSBC. Mainstar has over 35 years’ experience with self-directed plans and significant expertise related to the regulatory requirements of both the IRS and Bank examiners. As a direct result of being Mainstar’s agent, all relevant NDIRA accounts, records and transactions, as well as procedures and policies, are subject to oversight by Mainstar compliance officers and by extention, the OSBC.

Mainstar is the custodian for all of NDIRA’s individual accounts including all IRAs, HSAs, SEPs, SIMPLEs and Coverdell ESAs but not qualified plans such as the Solo(k) plans. NDIRA accounts and transactions are included in the population of accounts examined by the OSBC. The OSBC has focused on the transactions, asset handling, policies and procedures of administrators for Mainstar.

NDIRA is subject to oversight by Mainstar’s Trust Committee and Board of Directors through an Administrative Oversight Committee (AOC) composed of NDIRA staff as well as Mainstar management and compliance officers. NDIRA provides monthly reports for and attends the mandatory monthly AOC meeting to review activities, approve policy changes and provide ongoing oversight feedback.

Mainstar requires NDIRA to provide complete access to all records and assets of account holders for which it serves as Custodian. Although NDIRA performs all services for the accounts, ultimate control of the assets, including cash, rests with Mainstar as the custodian. Physical documentation of account assets are held in Mainstar’s vault; Mainstar also makes independent onsite visits and receives third party information to ensure that New Direction is following required procedures.

As required by Kansas regulations and its contract with Mainstar, NDIRA is subject to an annual “agreed upon procedures” evaluation conducted by an independent CPA who reviews and reports on items set forth in the Kansas regulations. The reports are submitted to Mainstar and available for the OSBC inspection.

Cash held in NDIRA individual accounts is held in a FDIC insured account or product. Cash in NDIRA accounts is allocated to accounts or products in multiple FDIC insured banks in order to provide FDIC insurance coverage of up to $250,000 per account holder per bank. All cash accounts are under the custodial ownership and control of Mainstar for the benefit of the individual account holders.