Custodian
Also called: custody bank, safekeeping agent
A custodian is the bank that holds securities safely on behalf of their owner, handling settlement, dividends, corporate actions and record-keeping. The point of the arrangement is legal separation: client assets are segregated, so a failing broker or manager cannot be paid from them. The absence of an independent custodian is a defining feature of nearly every major investment fraud, Madoff included, which is why 'who holds the assets' is a first-line due-diligence question.