Form of custody in which a client's securities are held under his own name in a separate individual account
Securities held in individual custody are kept separate from those owned by the bank or by third parties. This form of custody is used if the securities in question are not admitted to collective custody by a securities clearing and deposit bank, or if the client requests it. The name of the owner is printed on a strip of paper which is wrapped around the securities to keep them together. The certificates and the coupon sheets are separated for security purposes. The client is responsible for any costs associated with this form of custody.
From the client's perspective, the advantage of individual custody is that he can receive the original shares he delivered to the bank. He retains ownership of his specific shares.
Regulations on individual custody are contained in the section 2 of the German Securities Deposit Law (effective on 4 February 1937) and in the terms and conditions of the bank groups.
Antonym: collective custody
