What characterizes the custodian role in trust administration?

The custodian role in trust administration is characterized by independence, particularly from the investment advisor. This independence is crucial because it helps ensure that the custodian can act in the best interests of the trust beneficiaries without any conflicts of interest that might arise from having a close relationship with those making investment decisions.

By being independent, the custodian can safeguard trust assets and ensure compliance with legal and regulatory requirements, thereby fostering trust and accountability in the management of the trust. This separation allows for greater objectivity in the oversight of investments and enhances the overall integrity of the trust administration process.

This independence does not typically extend to daily investment decisions, financial auditing, or managing communications, which are generally responsibilities suited to other roles in trust administration.