Clearing, Settlement and Custody

securities for which income (interest) accrues on a daily basis until

the payment is made (usually annually or bi-annually depending

on the security type and domicile).

Foreign exchange reporting

Foreign exchange transactions should be related back to the

underlying securities trades or income receipts. Historical exchange

rates and interest rates should be reported to allow the investor to

check the actual rates obtained against the market closing rates. As

we noted earlier, custodians offer a variety of services related to

currency management and Forex dealing and making comparisons

for competitiveness are essential.

Consolidated reporting

Investors might ...