Governance

Licensing Authority

60/40 THE PLAN, Inc. serves as the central governing body ensuring structural integrity and IP control.

Program Operators

Independent, licensed execution entities that implement the framework directly with consumers.

Custodian Bank

Providing the financial control layer, ensuring separation of daily operations and managed funds.

Licensing Framework

The licensing structure flows conceptually from Intellectual Property to execution:

IP → Licensing Authority → Operators → Implementation
  • To protect the underlying methodology from dilution.
  • To ensure controlled, consistent, and compliant usage across all operations.

Custodian Bank

The Custodian Bank layer provides necessary credibility and trust, answering the critical message: The operator does not control the money.

  • Fund custody and security
  • Payment processing and tracking
  • Maintaining transparent financial records
  • Regulatory compliance oversight (AML, KYC)

This section outlines the intended institutional structure of the system.

Institutional Custodial Framework

Structured Financial Infrastructure

Purpose

The 60/40 System™ is designed to operate through a structured institutional model in which a designated Custodian Bank plays a central operational role.

The Custodian Bank is intended to provide the financial infrastructure required to ensure:

  • Secure handling of program funds
  • Transparent payment processing
  • Institutional-grade reporting
  • Operational integrity across transactions

Functional Role

The Custodian Bank does not act as an investor, loan originator, or credit decision-maker.
Its role is strictly custodial, operational, and administrative.

Core Functions

Within this framework, the Custodian Bank would be responsible for:

  • Maintaining segregated custodial accounts
  • Processing and allocating borrower payments
  • Administering escrow functions (taxes and insurance, when applicable)
  • Coordinating servicing operations
  • Delivering periodic financial reporting and reconciliation

Compliance & Safeguards Framework

Institutional Integrity and Risk Control

The 60/40 System™ incorporates a structured compliance and safeguards framework designed to ensure transparency, accountability, and institutional-grade operational integrity.

Fund Protection

  • Funds are intended to be held in segregated custodial accounts
  • No commingling of operational and capital funds
  • Full traceability of transactions

Operational Transparency

  • Periodic financial reporting
  • Account-level reconciliation
  • Independent verification capability

Audit & Oversight

  • CPA-level reporting structure (where applicable)
  • External audit readiness
  • Regulatory review compatibility

Role Separation

The system is designed with clear separation between:

  • Governance (60/40 THE PLAN, Inc.)
  • Operations (60/40 Business Method, LLC)
  • Custody (Custodian Bank)
  • Execution (Certified Institutions)

Regulatory Alignment

The system is designed to operate within established financial and regulatory frameworks.
All participating entities operate under their respective licenses and authorities.

The 60/40 System™ does not function as a regulated financial institution,
but as a structured framework integrating licensed participants.