who is qualified custodian
The custody rule imposes a number of requirements on SEC-registered investment advisers to protect client funds and securities over which the adviser has custody. Use of âqualified custodiansâ to hold client assets. First, with certain limited exceptions, an investment adviser is required to maintain client funds and securities with a âqualified custodian.â Qualified custodians can be banks, registered broker-dealers, futures commission merchants, or certain foreign entities.