2022 Trust Examiner School - Presentations

Internal Use Only

Custodian Responsibilities Custody Account: An agency account concerning which the main duties of the custodian (agent) are to keep safe and preserve the property and to perform ministerial acts with respect to the property as directed by the principal. The agent has no investment or managerial responsibilities. To be distinguished from managing agency account and safekeeping account. Agent: A person who acts for another person by the latter's authority. The distinguishing characteristics of an agent are (1) that he acts on behalf and subject to the control of his principal, (2) that he does not have title to the property of his principal, and (3) that he owes the duty of obedience to his principal's orders. https://www.fdic.gov/regulations/examinations/trustmanual/appendix_h/appendix_h.html

29

Internal Use Only

Custodian Responsibilities

Safekeeping

Annual reconciliation of holdings

Statements provided to appropriate parties

30