A custodian is a specialized financial institution that holds customers’ assets for safekeeping. Portfolio managers like CI Direct Investing open accounts in clients’ names with a custodian and manage the accounts on behalf of clients.
The responsibilities of a custodian are to:
- Safeguard your assets so that nobody can access them without your consent.
- Isolate your assets from the corporate assets of the custodian and the portfolio manager. That means that in the unlikely event that CI Direct Investing were to go bankrupt, your assets would be protected.
- Process trades as delegated by CI Direct Investing on your behalf, including buying and selling assets, and tracking and reconciling the account records.
- Manage administration related to your investments such as issuing account statements, collecting investment income on your behalf, and tax reporting.
CI Direct Investing uses the custodial services of CI Investment Services, a subsidiary of CI Financial, and Credential Securities.
