What is a Custodian Bank?

Custodian Bank is a commercial bank that has obtained OJK approval to conduct business as a custodian.”

Financial Fervices Authority

“Custodian, according to Law Number 8 of 1995 concerning the Capital Market (” Law 8/1995 “) and POJK 24/2017, is the party providing Securities safekeeping services and other assets related to Securities and other services, including receiving dividends, interest, and other rights, completing Securities transactions, and representing account holders who are their clients. ”

Financial Fervices Authority

What is a Custodian Bank?

Custodian Bank is a bank that will help take care of administration, supervise and maintain mutual fund assets ( safe keeping ). Each mutual fund must include a custodian bank in its prospectus. When you invest in mutual funds, your investment money is actually transferred to the custodian bank account .

Custodian Bank is one of the parties in the Collective Investment Contract (“KIK”). In KIK, the Custodian Bank and Investment Manager agree to collect and manage funds from the public in the form of mutual funds with a clear distribution of rights and obligations to each party.

Custodian Bank Duties

  1. Administering mutual fund assets, such as storing all certificates , documents and other assets;
  2. Perform administration related to investment manager management, for example recording the sale and purchase of shares , bonds , money markets, deposit placements , and others;
  3. Perform administration related to investors, such as sending confirmation of sale, purchase transactions, switching, unit calculations and report submissions.
  4. Participate in overseeing investment managers;
  5. Saving and securing mutual fund wealth.

 

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