What are the duties of a custodian when managing investments?

A custodian is an individual or organization responsible for managing investments on behalf of another person. In the state of Wisconsin, custodians who are managing investments are required to act in a fiduciary capacity, meaning that they are held to a high standard of care and must act in the best interests of the investor. The duties of a custodian include the management of investments in a manner that is consistent with the investor’s objectives, and the safekeeping of assets to protect the investor from loss or theft. Custodians must also carry out transactions in a timely manner and ensure all fees are paid in a timely manner. They must also properly diversify the investments in order to minimize financial risk, and monitor investments to ensure they are performing as expected. The custodian has a fiduciary duty to ensure that the investments are retained in compliance with applicable laws and regulations, as well as the investor’s stated objectives. Custodians are also required to provide periodic account statements that detail the value of assets under management, as well as income and expenses associated with their account. They should also be aware of any tax implications of investments, and develop strategies with regard to asset transfers, disclaimers, and other estate planning matters. Lastly, custodians are responsible for providing timely and accurate information to the investor, and must keep accurate records of all activities related to the account.

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What are the duties of a custodian when managing investments?

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