Saturday, December 25, 2010

Custodian

A custodian is an organisation such as a bank or specialist firm like State Street, that holds the securities and other assets of a mutual fund on behalf of investors. By having a custodian and/or trustee in place it increases the safety and controls in terms of administration and operational risk. The custodian generally acts behind the scenes and the investor may not even be aware of them.

Synonyms: Custodial services
 
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