Posted on June 18, by admin. The roles of depository custodian and depository are quite similar to one another. With the development of the financial world, the roles of custodians and depositories are constantly overlapping. There are however a number of main differences between custodian and depository. While custodians merely hold custody of assets and financial securities, depositories go depository step further to the services provided by a custodian and assume greater control, liability, and responsibility for the assets they hold. The following article provides an overview of each and highlights their subtle similarities and differences. A depository is a place in which things or assets are deposited for the purpose of safekeeping. Libraries are a good example of depositories as libraries are responsible for maintaining and safekeeping of books and information. In terms of business, a depository is known as a financial institution or organization that accepts deposits and bank securities and other financial assets. A depository has legal ownership over these assets and responsible for controlling those assets according to the established rules, laws, regulations, and guidelines. A securities depository which holds financial securities enable clearing and settlements, as well as book entry transfer or those securities. For example, The Depository Trust and Clearing Corporation the depository depositor in the world provides custody of the securities held much like a custodian and bank offers depository and settlement services. A Custodian is a person or institution that maintains the custody of assets or things. Examples of custodians include museums that hold historical artifacts, hospitals that hold medical records, and law firms that hold important legal documents. In the business world, a custodian is usually a bank or any other financial institution that is responsible for ensuring the safety of assets that are handed over for safekeeping. Such assets include financial securities such as stocks, bonds, certificates of deposit, and other valuables such as gold, diamonds, and jewelry. A custodian provides such safekeeping services to investors and customers. The custodian also provides the services of purchasing and selling such valuable assets on behalf of the investor. In this case, the custodian takes full responsibility when ensuring that the depository are properly taken into custody and accounted for, and in the case of a depository, that the assets are properly delivered and agreed payment terms are met. In the financial world, the roles of custodians and depositories are increasingly overlapping to a point at which the differences between the two are becoming quite subtle. The main difference is that a depository has larger oversight responsibilities for the assets held in comparison to the custodian. In addition bank having custody over the assets, a depository also has control and legal ownership over the assets. Another major difference is that the depository must maintain, sell, issue, repurchase, and conduct other activities involving the assets and securities under the rules, laws and other applicable financial, legal or regulatory guidelines. In comparison, a custodian bank these activities bank the instructions of their bank. Depositories can delegate custodian tasks to third parties, and if any financial instruments held depository lost, the depository is completely liable and must assume full responsibility. However, the custodian is only responsible for any general losses or negligence, and not be responsible for any investment losses. The depository conducts all the services and activities of a custodian, but goes a step ahead in terms of control of assets and liability. CustodianCustodian and DepositoryDepository. Terms of Use and Privacy Policy: Home Vacancies About Request Article Contact Us. Difference Between Depository Between Things, Terms and Objects. Difference Between SOX and Operational Audit Difference Between Liquidation and Bankruptcy Difference Between Variable and Fixed Interest Rate Difference Between Janitor and Custodian Difference Between Currency Swap and FX Swap. Help us to improve our writing. Cite This Bank "Difference Between Depository and Custodian. Leave a Bank Cancel reply. Featured Topics Difference Between W2 W4 and W9 Difference Between ITIN and SSN Difference Between Scareware and Ransomware. Latest Posts Difference Between Prions and Viroids Difference Between Aneurysm and Blood Clot Difference Between Annual Leave and Holiday Pay Difference Between Solid and Liquid Media Difference Between W2 W4 and W9 Difference Between ITIN and SSN.
CREDIT SUISSE VAULT - An Exclusive Look Inside The Credit Suisse Underground Vault
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I am a very engaged parent, I do limit his privileges, encourage creative activities, have always been pro-active about getting him help, and following professional advice.
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I am a very engaged parent, I do limit his privileges, encourage creative activities, have always been pro-active about getting him help, and following professional advice.