Custodian

A custodian is a person or organization that holds assets for another person or organization. Custodians are typically responsible for safeguarding the assets, keeping accurate records of them, and making them available to the owner when needed.

There are many different types of custodians, each with their own specific set of responsibilities. Some of the most common types of custodians include:

* * *Banks:* Banks are one of the most common types of custodians. They typically hold a wide variety of assets for their customers, including cash, securities, and other investments. Banks are also responsible for providing a variety of services to their customers, such as checking accounts, savings accounts, and loans.
* * *Brokerage firms:* Brokerage firms are another common type of custodian. They typically hold securities for their customers, such as stocks, bonds, and mutual funds. Brokerage firms also provide a variety of services to their customers, such as trading securities, providing investment advice, and managing portfolios.
* * *Trust companies:* Trust companies are specialized custodians that are typically used to hold assets for trusts. Trusts are legal entities that are created by a settlor (the person who creates the trust) for the benefit of a beneficiary (the person who receives the benefits of the trust). Trust companies are responsible for managing the trust assets in accordance with the terms of the trust agreement.
* * *Custodial banks:* Custodial banks are specialized banks that provide custody services to institutional investors, such as pension funds, mutual funds, and hedge funds. Custodial banks typically hold a wide variety of assets for their institutional clients, including cash, securities, and other investments. Custodial banks also provide a variety of services to their institutional clients, such as trade execution, clearing, and settlement.

Custodians play an important role in the financial system by helping to safeguard assets and make them available to their owners when needed. Custodians also provide a variety of services to their clients, such as recordkeeping, investment advice, and portfolio management.