🔒 Custody Services: The Cornerstone of Asset Safety
Custody Services refer to the specialized financial services provided by institutions—known as Custodian Banks or simply Custodians—primarily for the safekeeping, administration, and management of financial assets on behalf of investors.
The core function is to ensure the safety and segregation of client assets from the custodian's own assets, a crucial measure that protects investors in the event of the custodian's insolvency or failure.
Custodian banks are not typically involved in making investment decisions (that is the role of an asset manager); rather, they are the trusted administrators and guardians of the assets after the investment decisions have been made.
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