Custody

In financial services, custody means that a legal or natural person is in possession of the financial assets of another person.

For example: a company offering banking services to clients will have custody of their funds. The client deposit their money into the banking services company, who has then custody of these funds.

Custody is usually a regulated activity, as it encompasses the responsibility of managing the money and financial assets of other people.

Share this article on

Latest Articles

7 minutes

What Is Virtual Sports Betting and How Does It Work

The regulatory status of virtual sports betting depends entirely on whether a local government looks at the visual format, a.k.a the "sports wrapper" or the underlying technology (the RNG factor).
What Is Virtual Sports Betting and How Does It Work image
Hweiching Lim photo
Hweiching Lim Lead Consulting Manager
5 minutes

Racino, Explained

A racino runs on two separate licenses under one roof, and most of the confusion about what a racino actually is comes from ignoring that split. 
Racino, Explained image
Anastasia Marchenko photo
Anastasia Marchenko Legal Researcher at LegalBison