Custodian - Financial definition
Concise definition of the term custodian
A custodian is an organisation which holds securities and cash associated to securities transactions on behalf of its clients. He also handles the settlement of securities transactions on their behalf and provides a range of associated services like reporting, securities lending or the processing of corporate actions.
Comprehensive definition of the term custodian
The services provided by custodians to their clients may include:
- The holding of securities and cash in safe custody, including reporting, securities lending and borrowing, income collection and corporate action processing.
- The transfer of securities and cash according to the account owner's instructions
- The confirmation of the activity status of instructions to customers
- The updating of the account owner's securites holdings and cash account balance