FAQ – Regulation and Best Practices

Company Status

Strategic Gold is not an investment or fund management business. We do not invest on your behalf nor offer investment advice. Instead, we enable you to buy, hold, sell, and take delivery of precious metals.

Regulatory Exemptions

Although we adhere to the highest business standards, Strategic Gold is not required to register with any regulatory authority. This is because we only deal with non-securitized physical gold and silver. As a result, we are exempt from several regulations:

• We are not governed by the Securities Act of 1933 since all precious metals held in Clear Title Accounts are allocated and unencumbered bullion, not securitized forms of the metal.
• We are not governed by the Investment Advisers Act of 1940 because we do not provide management or advisory services.
• The CFTC does not regulate us under Section 742 of Dodd-Frank, as we settle transactions within the allowed time frame (T+2).

Money Services Business Exemption

We are not classified as a Money Services Business (MSB) because we operate a “closed system.” All funds used to purchase bullion must originate from a linked bank account, and disbursements are sent back to that same account. Consequently, we are not considered a Money Transmitter.

For more information or to request our ‘Model Due Diligence Questionnaire,’ you can contact us at
accounts@strategicgold.com
or call 239 692-9154.

Compliance and Ethics

Yes, in observing our Regulation and Best Practices we maintain and regularly review written compliance policies and procedures that are included in our Code of Business Conduct and Ethics. Since Strategic Gold believes quality governance starts with sound principles, we prioritize transparency and strong internal controls.

Adherence to LBMA Standards

We also follow the business standards set by the London Bullion Market Association (LBMA), which represents the global gold and silver bullion market. Our compliance is managed by a Corporate Compliance Officer with over 30 years of experience in financial services operations.

Handling of Non-Public Information

Our Code of Ethics includes policies for handling material, non-public information. Key personnel regularly review and attest to safeguarding this information. If you’d like more details on our Code, feel free to contact us at accounts@strategicgold.com or call 239 692-9154.

Comprehensive Risk Management

Strategic Gold’s mission revolves around managing risk. We established the company in response to systemic risks revealed during the 2007-2009 financial crisis. Direct ownership of physical gold and silver provides the best protection against these risks.

Enterprise Risk Management Program

Our Enterprise Risk Management (ERM) program enables us to identify and control risks throughout the company. By integrating risk management into daily business practices, we continuously improve our ability to safeguard client assets. This proactive approach allows us to address and anticipate risks effectively.

Continuous Improvement

Risk management is an ongoing process. Therefore, our ERM program evolves with new challenges and opportunities to ensure that we remain ahead of potential risks while continuously refining our controls.

Counterparty Risk Protection

Your Clear Title Account is not subject to counterparty risk. As the account holder, you maintain ownership of your precious metals at all times and can take physical possession whenever you choose. If Strategic Gold were to cease operations, your ownership would remain unaffected.

Independent Audits

We regularly audit both the precious metals in our vaults and our business processes. Independent auditors verify our adherence to governance practices, ensuring that your assets are always protected. You can view these audit reports in your secure online account.

Customized Precious Metals System

We use a custom-built Precious Metals System (PM System) designed to manage all aspects of your Clear Title Account. The software facilitates the seamless management of bullion purchases, sales, transfers, and reporting.

Transaction and Audit Transparency

The PM System generates detailed transaction reports that include bar lists with specific identifiers such as refiner marks and serial numbers. All transactions are reconciled with reports from our bullion trading partners, ensuring complete transparency. Clients can access these reports through the secure Client Login section.

If you’d like a demo of the Client Portal, feel free to contact us at accounts@strategicgold.com or call 239 692-9154.

Asset Protection and Audits

Our Regulation and Best Practices Policy is to ensure the security of your precious metals by collaborating with independent service providers who follow a strict system of checks and balances. We have implemented client safeguards such as insurance, dual control over metal movements, and continuous audit trails.

Independent Audits

We undergo regular audits from two independent firms to verify both the amount of precious metals in the vault and the cash transactions within each account. These audit reports are available in the secure online account for all clients.

Ownership Independence

Your ownership does not depend on the solvency of Strategic Gold or the custodians. You maintain Clear Title to your assets at all times, and you retain the right to take delivery of your gold whenever you choose. The bullion assets held in your Clear Title Account remain your outright property, stored independently in specialist facilities run by accredited vault operators. Strategic Gold only administers your assets, as evidenced by the Bailment Agreement. Consequently, even if Strategic Gold or a custodial vault fails, your assets remain yours.

Protection Against Creditors

No, your bullion remains your exclusive property. Because it is allocated to you alone, it is not considered the property of Strategic Gold or the custodian vaults. Therefore, it is fully protected from any claims by creditors.

Ownership Protection in Bankruptcy

When you sign the Bailment Agreement upon opening your account, it establishes that you have direct, uncompromised legal title—Clear Title—to your gold and silver. This means that even if Strategic Gold or a vault custodian goes bankrupt, your ownership remains intact and unaffected by any corporate failures.

Safeguards in Case of Shutdown

If Strategic Gold shuts down, we initiate our Operational Procedures for Circumstances In Extremis. In these situations, an independent Trustee, with access to all critical systems and databases, will act as the lawful administrator of your assets. Furthermore, all our vault custodians and trading partners have agreed to recognize this Trustee as the rightful agent for the benefit of clients during such events.

Yes, as an integral part of our Regulation and Best Practices Strategic Gold has implemented a comprehensive Business Continuity Plan (BCP) that ensures minimal service disruption during disasters. Our disaster recovery site is fully equipped with the necessary technology and communication infrastructure to handle customer orders and transactions seamlessly. This plan is reviewed and updated annually.

If you have any questions regarding our disaster recovery plan, you can reach an account representative at 239 692-9154.