Focused comparison

Australia custody/client assets vs United States custody/client assets

A focused comparison for custody/client assets businesses choosing between Australia and United States.

QuestionAustraliaUnited States
Likely routeAFSL custody, depository, client money, and responsible entity analysisInvestment adviser custody rule, qualified custodian, broker-dealer custody, and state custody analysis
Key peopleResponsible managers with appropriate competence and organisational capacity Authorised representatives where services are provided under another licenseeInvestment adviser representatives may require state registration depending on facts Broker-dealer registered representatives require firm sponsorship, CRD filing, exams, and registration
Corporate evidenceCustody and client assets; Capital and financial resources; Compliance framework; Outsourcing and vendors; Regulatory reporting; Official-source route memo; Public register verification plan; Questions log for qualified advisersCustody and client assets; Capital and financial resources; Compliance framework; Outsourcing and vendors; Regulatory reporting; Official-source route memo; Public register verification plan; Questions log for qualified advisers
Capital/resourcesFinancial resource expectations depend on authorisations, financial products, client money/custody, and licensee obligations.Adviser capital rules are usually state-specific or tied to custody and other facts; broker-dealers face SEC net capital and FINRA membership expectations.
TimelineOften 4 to 8+ months depending on authorisations and proof quality.SEC adviser registration can become effective in about 45 days if complete; FINRA new member review may run up to 180 calendar days for substantially complete applications.
Common bottlenecksRequested authorisations are broader than the actual operating plan can support Responsible manager evidence is thin or not matched to all authorisationsBroker-dealer issues hidden inside compensation, solicitation, placement, or transaction workflows Custody, private fund audit, and fee deduction arrangements not fully analysed