True
A custodian holds securities and other assets in electronic or physical configuration.
Unit Deployment Manager
In the context of a 401(k), FCC as a custodian refers to a financial institution or entity responsible for holding and safeguarding the assets within the retirement account. The custodian manages transactions, maintains records, and ensures compliance with regulatory requirements on behalf of the account holder. Their role is crucial for protecting the investments and facilitating the account's operation, including contributions and distributions.
Assets under custody (AUC) refer to the total value of financial assets that a custodian holds on behalf of clients, ensuring safekeeping and settlement of transactions. Assets under administration (AUA), on the other hand, encompass a broader range of services, including managing and servicing these assets, which may involve accounting, reporting, and compliance functions. While AUC focuses solely on the safekeeping aspect, AUA includes additional administrative services related to asset management.
(1) A Mutual Fund promoter company: Their role is to settle a Trust owning all fund assets. That trust will invest all fund money in the name of the trust. (2) Trustee of Mutual Fund: Trustee has to be a bank. (3) Fund Manager: Their role is to invest and daily operations. They are investment advisers approved by Capital Markets Authority/Securities Exchange Commission. (4) Custodian: Custodian holds custody of all the assets of the fund. They have to be a bank or approved institution authorized to act as Custodian by Capital markets Authority/ Security Exchange Commission. (5) In addition Investment Banks/Brokers will be retained to market the Mutual Fund. Their role is to get subscription into the fund.
A custodian holds securities and other assets in electronic or physical configuration.
A. Organization Assets screen
Organization Assets screen
Yes
No
organization assets screen
Organization Assets screen
Organization Assets screen
Organization Assets screen
Organization Assets screen
No
AUC is the value of assets held under custody by a "custodian of securities".