Custodian

A financial institution, usually a bank or a trust company, that holds a mutual fund's securities and cash in safekeeping.

A custodian is legally responsible for ensuring that an item or person is safe and secure. In investment terms, a custodian is the financial services company that maintains electronic records of financial assets or has physical possession of specific securities.

The custodian's client may be another institution, such as a mutual fund, a corporation, or an individual. For example, with an individual retirement account (IRA), the custodian is the bank, brokerage firm, or other financial services company that holds your account.

Similarly, the Depository Trust Company, a subsidiary of the Depository Trust and Clearing Corporation (DTCC), is the custodian of millions of stock certificates held in its vaults.

Data Custodian.: Person having administrative control of a document; for example, the data custodian of an email is the owner of the mailbox which contains the email. Custodians may be electronic or hard copy.