Custody, or custodial

Custody means the safekeeping of financial assets by a financial institution, such as a bank or investment firm, called a custodian. These assets can include stocks, bonds, and other securities. Custodians not only safeguard these assets but also handle administrative tasks, settlement of transactions, and compliance with regulations. Depositary banks that offer ADRs (American Depository Receipts) also charge custodial fees. This is to cover the registration, compliance and record-keeping services that come with listing foreign shares as ADRs.