What are the duties of a custodian when managing investments?

A custodian in Washington State is responsible for the safekeeping and managing investments on behalf of a client. Custodians are fiduciaries and are legally required to act in the best interests of their clients. The primary responsibilities of a custodian when managing investments include: 1. Maintaining accurate records of each client’s accounts. 2. Keeping assets separate from their own assets and other clients’ assets. 3. Processing deposits, withdrawals, transfers and other transactions in a timely manner. 4. Ensuring that assets are held in appropriate accounts and jurisdictions, in compliance with regulatory requirements. 5. Rebalancing client accounts as needed. 6. Collecting dividends and interest payments, reporting them to clients, and remitting them as requested. 7. Producing regular portfolio reports and account statements for clients. 8. Communicating with clients, responding to inquiries, and resolving any disputes that arise. 9. Recommending investments to clients in accordance with their investment objectives. 10. Providing clients with tax and financial planning advice when needed. The custodian’s duties can also include taking measures to protect the client’s assets against fraud, theft, or other losses. The custodian must be knowledgeable of applicable tax laws and regulations, and have the skills to identify and respond to investment risks. Custodians must be licensed by the Washington State Department of Financial Institutions.

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What are the duties of a custodian when managing investments?

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