What are the duties of a custodian when managing investments?

A custodian is an individual or company responsible for managing and safeguarding investments. In California, custodians have a number of duties to fulfill when managing investments. First, custodians must ensure that the investments are held in accordance with state and federal laws. This includes reporting transactions to the SEC (Securities and Exchange Commission) and adhering to anti-money laundering laws. Custodians must also keep accurate records of all investment activity and provide regular account statements to their clients. Second, custodians must practice due diligence when evaluating investments and selecting investments that are suitable for their clients. This includes researching the investment’s history, performance, and fees in order to determine whether it is an appropriate fit for the client’s portfolio. Third, custodians are responsible for executing investment transactions. This includes purchasing and selling investments based on the client’s instructions, ensuring that funds are available to purchase the investments, and recording the transactions in the client’s portfolio. Finally, custodians must monitor and protect the investments in their client’s accounts. This includes diversifying investments to reduce risk, monitoring performance, and making adjustments when necessary. Custodians play an important role in protecting investments and helping clients get the most out of their money. By following these duties, custodians can help their clients make smart, informed decisions about their investments.

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What are the duties of a custodian when managing investments?

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