Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

The function of a custodial bank is to pay for and receive securities on behalf of mutual fund companies.  There is usually a time limit for payments, such as 3 days settlement period.  The bank also collects income such as dividends from mutual fund companies.

Having a custodial bank does not affect the customer who moves.  If the customer is in the state where the representative is registered, and was a resident of that state, the representative is able to process a trade fro the customer as long as the purchase order, account forms are completed before the customer moves to another state.  Once the customer moves to another state, and the representative is not registered in the state, the representative cannot handle further tra.  If the customer is in the state where the representative is registered, and was a resident of that state, the representative is able to process a trade fro the customer as long as the purchase order, account forms are completed before the customer moves to another state.  Once the customer moves to another state, and the representative is not registered in the state, the representative cannot handle further trades.