Who is a Custodian Manager?
We often hear about a custodian manager, and many may wonder what its role in a business is? In most cases, a custodian manager is a person whose primary role is to oversee the investors’ capital and assets. A custodian manager is in charge of accounts, ensuring that all the sales and purchases are strategical, and moving in the right direction. It keeps transaction records concerning the securities and ensures that all the investments are legit and safe.
Who needs a Custodian Manager in Singapore?
Singapore is one of the top countries to kick off a fund management company. Why is that? It features a government arm, the Monetary Authority of Singapore (MAS), responsible for creating a stable regulatory framework that ensures both investors’ and clients’ safety and guarantees excellent performance. Suppose you are thinking of starting a fund management company and wonder if Singapore has rules about this sector. And you are right to consider this detail since the country has policies.
MAS requires that every Fund Management Company places clients’ and investors’ money and assets under a custodian manager. The firm should ensure that the custodian is licensed or registered under MAS. The custodian must have permission to offer their functions to where the assets and money are at a time. Therefore, as you start an FMC or migrate your offices to Singapore, you must ensure that you have a custodian manager to avoid crushing with Singapore’s regulatory framework, leading to business closure.
Role of a Custodian Manager?
Every Singapore Fund Management Company must have a manager, and you are probably wondering why this institution is vital? Custodian managers are responsible for clients’ and customers’ security, ensuring that the money and assets are safe. They hold assets and stocks in either physical or electronic form.
In most cases, is a position in a large bank or financial institution since they tend to safeguard assets and stocks worth billions? Some banks may specialize in custodian services, while others tend to offer them part of their package.
Another role custodian managers play is to manage the assets and finances of a minor. For instance, a family may choose custodian managers to control how their minor use their money, making sure that they have what they need without wasting resources.
They also collect information about assets, ensuring that the flow of money is right and a strategic move. They provide maximum security of funds.
Requirements for a Custodian Manager in Singapore
- MAS requires that an FMC checks out the practices and financial strength of a custodian before appointing them
- It requires companies to set several standards for every custodian manager, which include:
- Check the continuity plan before selecting them
- Reassess a custodian regularly to check for any miscalculations in the internal control setting
- Ensure you keep records of every custodian and the assets and finances they are in control of and check for any problems
They play a vital role and are responsible for the assets and finances of a company; hence MAS requires firms to take the necessary measures to safeguard their properties. If you hope to work in Singapore and need a custodian, consider the information above to ensure that you follow all MAS requirements.