SDIRA Custodians vs Third-Party Administrator risk factors

[James S.]

I understand that SD IRA custodians are regulated where TPAs are not, and this introduces risk when using a TPA. What specific risk and how much of it exists in practice when working with a well established TPA like the Entrust Group?

(For context, I will be opening an SD IRA and my employer's compliance dept has already approved Entrust, and a few custodians I've reached out to don't meet their requirements. I would like to understand the real world implications of proceeding with a TPA if that is the only option).