Custody, Safekeeping, and Client Accounts

Custody, safekeeping, and client-account terms describe arrangements where a bank, broker, trustee, or other intermediary holds cash, securities, documents, or other assets for a client or beneficiary. This branch covers client accounts, custodial accounts, custodian fees, nominee accounts, and safekeeping.

Use these pages when an account record must distinguish the legal holder, beneficial owner, custodian, nominee, fee arrangement, settlement role, or safekeeping responsibility.

What This Branch Covers

Decision Lens

Start with ownership and control. The party named on a custody account may not be the economic owner, and the custodian’s duties depend on the agreement, asset type, jurisdiction, and recordkeeping role.

Evaluation Checklist

• Identify the custodian, client or beneficiary, account title, asset type, beneficial owner, fee schedule, settlement role, and statement date.
• Separate legal title, beneficial ownership, safekeeping duty, investment authority, cash movement, and settlement responsibility.
• Check custody agreements, account statements, nominee records, fee schedules, corporate-action records, and reconciliation reports.
• Review whether the arrangement changes asset protection, access, fees, settlement timing, or client-money treatment.
• Treat legal, fiduciary, tax, regulatory, and investment conclusions as professional-advice areas.

Common Mistakes

• Treating the account holder of record as the beneficial owner without checking nominee or custody terms.
• Ignoring custodian fees and asset-servicing charges.
• Assuming safekeeping includes investment advice or discretion.
• Reviewing client assets without confirming segregation and reconciliation records.

In this section

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