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If you are a person who owns financial assets and does not have expertise or time to manage them, you usually seek the professional management service. It may be a mutual fund, hedge fund, or brokerage house. This is when you put your assets under management. Such mangers make decisions when to sell, buy, or leverage your assets, but usually don't have the willingness or legal authority to hold your assets. They only mange them. This is why before they start mange the assets, they instruct you to transfer or physically send your assets to a different and frequently associated with them financial institution like a large bank. These large banks hold the assets physically or convert them into the so-called 'street name,' where your assets like stocks or bonds exist only as electronic data. These custodians have legal authority to hold your assets and are also responsible for reporting tax and legal implications to the appropriate government agencies. They report suspected money laundering cases or gains and losses on asset sales, for example. In case of underage children being in position of assets, the assets are usually put by a giving entity under the supervision of a trusted adults or institutions, which become custodians of assets for the benefit of the children. They are responsible for both safe keeping and management, and, usually, they follow the path described in the first paragraph. In such situation, you could speak of two custodians and a manager: custodian (e.g., a trusted adult) who chooses a manager, a manger who makes investing decisions, and a bank/custodian that holds assets physically or in "the street name.'

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Q: What is difference between Assets under management and assets under custody?
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