Understanding Custody

What are Custodial services?

Traditionally, custody was the holding and safeguarding of financial assets for third parties. As financial markets have become more sophisticated and digitised, custody has developed to become no longer characterised by physical safekeeping (of financial assets) but by a range of information and banking services.

Today the primary work of the custodian is about managing information – information about the investors’ financial assets and the rights attached to those financial assets.

Financial services in Australia comprises a variety of participants, products and markets; and no shortage of applicable laws, regulations and ongoing obligations.

Our Understanding Custody course has been designed to address the education and training needs of those working in or operating a custodial service. We outline what custody is and why clients use its services while exploring how custody has developed from its initial safe-keeping role to become largely a provider of information services to clients.

Program Content

Learning Outcomes

  • Define what custody is in the financial services industry
  • Identify custodians and the customers they service
  • Explain the activities custodians typically carry out
  • Describe the various types of investment fund structures
  • Evaluate the role of custodians in investment transactions
  • Discuss risk factors and regulatory requirements that apply to custodial services.

What you will learn

Who is this course for?

  • New entrants or those working in or supporting custodial services
  • Participants working in funds management who wants to understand the role that custody plays in Australia.

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

On successful completion, you will be awarded a Certificate of Attainment confirming that you have successfully completed the course, Understanding Custody.

Explore Understanding Custody

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Frequently Asked Questions

Traditionally, custody was the holding and safeguarding of financial assets for third parties. As financial markets have become more sophisticated and digitised, custody has developed to become no longer characterised by physical safekeeping (of financial assets) but by a range of information and banking services. Today the primary work of the custodian is about managing information – information about the investors’ financial assets and the rights attached to those financial assets. Our Understanding Custody course has been designed to introduce the custodial services industry. We outline what custody is and why clients use its services while exploring how custody has developed from its initial safe-keeping role to become largely a provider of information services to clients.

“custody” and “custodial services” are interchangeably. Both terms are used in the industry and mean essentially the same thing.

A clearing house is a financial services organisation that provides clearing and settlement services for financial transactions, usually on a futures exchange, and often acts as central counterparty. A clearing house may also offer novation, the substitution of a new contract or debt for an old contract or debt, or other credit enhancement services to its members.
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence.

You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

Financial Education Professionals acknowledges the Traditional Owners of Country throughout Australia. We pay our respects to Elders past, present and emerging.