What is Document Custody for Private Investments?
April 28, 2023 | Pete Bergman | UMB
Document custody for private investments is the practice of securely storing and managing legal agreements, contracts, transaction records, and other relevant documents. Private investment managers are increasingly seeking document custody services, even when they may not be required by law to engage a third-party custodian for other purposes.
That’s often at the suggestion of investment managers’ legal advisors or at the request of institutional investors in their investment products. These parties recognize document custody as important for how it adds an extra layer of protection by reducing the risk of fraud or unauthorized access. Investment managers also derive other benefits, though. These include comprehensive document management, more convenient reporting, and greater readiness to meet the demands of regulatory compliance and business continuity plans…
