Custody refers to the safekeeping of financial assets such as securities, cash, and other investment instruments. Custody services are typically provided by financial institutions such as banks, trust companies, or broker-dealers. These institutions are responsible for holding and safeguarding clients' financial assets, managing the collection of dividends, interest payments, and other income generated by the assets, and providing periodic statements to clients detailing their holdings and transactions.
Types of Licenses
Providing Custody means one or more of the following activities:
- safeguarding and administering Investments belonging to another Person;
- in the case of a Fund, safeguarding and administering Fund Property; or
- safeguarding and administering Digital Assets belonging to another Person.
(AIFC Gen Rules)