What Is Custody?
An adviser's holding of client funds or securities, directly or indirectly, such as having authority to withdraw funds from a client's account. Advisers with custody face heightened requirements, including surprise audits and specific safekeeping rules.
Custody across 2 exams
Custody appears on the following exams. Each defines it in the context candidates are tested on:
- Series 65
- An adviser's holding of client funds or securities, directly or indirectly, such as having authority to withdraw funds from a client's account. Advisers with custody face heightened requirements, including surprise audits and specific safekeeping rules.
- Series 99
- The holding of customer securities and cash by a broker-dealer, introducing broker, or custodian on behalf of the customer. Operations professionals oversee reconciliation and safeguarding of custodial assets.