Today, most of the financial instruments are electronic and dematerialized: so are the notes that are offered via Custodians or trading accounts may hold a variety of financial instruments for their clients: equities, bonds, mutual funds and ETF units. They arrange for transfers and settlements when these instruments are traded. 

Custodians act like a warehouse and store individuals’ assets. They help in keeping financial instruments safe. In addition, their service is normally comprised of collecting dividends, dealing with taxes, and settling transactions. There are different kinds of custodians: some of them are largely pure play custodian banks, while others offer that service next to online trading, commercial or investment banking. 

When an investor acquires a note via the SPV, he or she must not have a custodian bank yet. It is only by the end of a campaign when the notes are to be transferred to his or her custody. 

Shares can be traded. What about notes?

Since the notes issued by the SPV are securities, it is possible, in general, to sell, transmit or leave your notes anytime to anyone you want. However, a secondary market for trading the notes neither exists nor is intended to establish a listing. Accordingly, it is not certain if notes could actually be sold. If they were indeed sold, you simply inform your custodian about the new owner and the notes would be transferred to his or her trading account. 

If you are not sure if your financial institution – a bank or an online broker for that matter – offers security deposits, please contact your financial institution. For any further inquiries regarding security deposits, custodian banks or notes, please do not hesitate to ask us.

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