Typically, this is a multinational bank, not necessarily based in the UK, offering services to major businesses across the world. The custody operation in either case may be conducted in-house or be bought in. There is also the trustee of a fund holding assets safely on behalf of a child. The management of the assets in such a case could be placed with an investment manager but the trustee himself could be involved in providing custody services. It is important to bear in mind that a pure custodian has no discretion as to the way in which he deals with the assets.
Custodians simply act on the instructions of clients.
They do not give advice or take any decisions about the sale or purchase of investments themselves. But it can also cover the small country solicitor holding share certificates for an investor in his safe for safekeeping. The business which this order will bring under regulation is somewhat less than all this. We do not want to regulate our country solicitor who only safeguards assets. So the definition requires that both safekeeping and administrative services are being provided before it will bite.