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

Download Brochure

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 will I learn in this workshop?2026-07-15T18:59:10+10:00

The workshop combines regulatory updates with practical compliance guidance, helping Responsible Managers better understand their obligations and strengthen their governance framework.

Topics include:

Credit regulation and licensing

Understand the current regulatory framework governing Australian Credit Licensees and ASIC’s expectations of Responsible Managers.

The role and responsibilities of a Responsible Manager

Explore what ASIC expects Responsible Managers to do in practice and how to effectively discharge your responsibilities.

Regulatory priorities

Understand the emerging issues and compliance risks currently attracting regulatory attention.

Recent ASIC regulatory outcomes

Review recent enforcement actions and regulatory outcomes with a focus on the role Responsible Managers played – and the lessons every licensee should learn.

Accountability and governance

Strengthen your oversight, governance and compliance framework through practical examples and proven approaches.

Managing your ongoing obligations

Learn practical tips for staying across your obligations, maintaining effective records and meeting your reporting responsibilities.

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