Custodian Services
Custodian Services refers to the safekeeping and administration of financial assets by specialized banks or financial institutions. Think of them as super-secure digital and physical vaults that hold and track investments like stocks, bonds, and other securities for large organizations. These services handle tasks like settling trades, collecting dividends and interest, and providing reports on all financial activities. Major providers include companies like State Street, BNY Mellon, and JPMorgan. When you see this term in resumes, it usually indicates experience with managing relationships with these custodian banks or working with their systems to track and report on investments.
Examples in Resumes
Managed relationships with Custodian Services providers for $2B in assets
Coordinated daily reconciliation processes with Custodian Bank partners
Led transition of Global Custody services between major providers
Typical job title: "Custody Services Managers"
Also try searching for:
Where to Find Custody Services Managers
Professional Networks
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you manage a major custodian transition project?
Expected Answer: Should discuss project planning, risk management, stakeholder communication, timeline creation, and ensuring minimal disruption to daily operations. Should mention experience with parallel running and data validation.
Q: How do you ensure effective oversight of custodian relationships?
Expected Answer: Should explain monitoring service levels, regular review meetings, escalation procedures, fee analysis, and maintaining strong relationships with key custodian contacts.
Mid Level Questions
Q: What are the key components of daily custody operations?
Expected Answer: Should describe trade settlement monitoring, corporate actions processing, reconciliation procedures, and handling of income payments and tax claims.
Q: How do you handle failed trades with custodians?
Expected Answer: Should explain investigation process, communication with brokers and custodians, understanding root causes, and implementing preventive measures.
Junior Level Questions
Q: What is the role of a custodian bank?
Expected Answer: Should explain basic functions like safekeeping of assets, settlement of trades, and reporting services in simple terms.
Q: What types of reports do custodians typically provide?
Expected Answer: Should mention holdings reports, transaction reports, corporate action notifications, and basic performance reporting.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of custody operations
- Trade settlement monitoring
- Simple reconciliations
- Report generation and analysis
Mid (2-5 years)
- Complex reconciliation resolution
- Corporate actions processing
- Client relationship management
- Process improvement implementation
Senior (5+ years)
- Custodian relationship oversight
- Project management of custody transitions
- Team leadership and training
- Strategic planning and risk management
Red Flags to Watch For
- No understanding of basic custody operations
- Lack of attention to detail in reconciliation work
- Poor communication skills for stakeholder management
- No experience with major custodian platforms
