Custodian

Categories: Mutual Funds, Banking, Brokerages, Legal, ,

A custodian is legally responsible for ensuring that an item or person is safe and secure. In investment terms, a custodian is the financial services company that maintains electronic records of financial assets or has physical possession of specific securities. The custodian's client may be another institution, such as a mutual fund, a corporation, or an individual. For example, with an individual retirement account (IRA), the custodian is the bank, brokerage firm, or other financial services company that holds your account. Similarly, the depository trust company, a subsidiary of the depository trust and clearing corporation (DTCC), is the custodian of millions of stock certificates held in its vaults.