IEIM401580 - Financial Accounts: Custodial Account
Financial Accounts: Custodial Account
A Custodial Account is an account (other than an Insurance Contract or Annuity Contract) for the benefit of another person that holds one or more financial assets.
A Cash Value Insurance Contract or an Annuity Contract is not considered to be a Custodial Account, but these could be assets held in a Custodial Account. Where they are assets in a Custodial Account, the insurer will only need to provide the custodian with the balance or value of the Cash Value Insurance Contract.
A Custodial Account does not include Financial Instruments or contracts (for example, a share or stock in a corporation) held in a nominee sponsored by the issuer of its own shares, which are in every other respect analogous to those held on the issuer’s share register.