Who this helps
- - Asset managers
- - Platforms
- - Brokers
- - Operations teams
Custody is more than possession
A firm may create custody or client asset questions even when a third-party custodian holds legal title. The practical question is whether the firm can move, instruct, deduct from, pledge, or otherwise control client assets.
Custody assumptions should be documented early because they affect capital, audit, disclosure, compliance monitoring, agreements, and regulator scrutiny.
Evidence should follow the money
Map every money and asset movement. Include subscriptions, redemptions, fees, brokerage payments, margin, collateral, withdrawals, corporate actions, and error correction.
The map should identify the legal entity, bank or custodian, authority source, approval step, record, and exception handling.
Practical checklist
- - Draw asset and money flows.
- - Identify control points and deduction rights.
- - Check whether custody assumptions change capital, audit, and licence scope.
Disclaimer
Information on LicenseCompare is for general educational purposes only and does not constitute legal, regulatory, financial, tax, investment, or professional advice. Licensing requirements depend on facts and change over time. Always consult official regulator materials and qualified professional advisers.