What service is provided by a dealer member for clients' fully paid-for securities registered in their names?

What service is provided by a dealer member for clients' fully paid-for securities registered in their names?

• A. Safekeeping
• B. Custodial Services
• C. Asset Management
• D. Brokerage Services

Answer: (A)

The service provided by a dealer member for clients' fully paid-for securities registered in their names is safekeeping. Safekeeping refers to the secure storage and protection of clients' securities, ensuring that these assets are safely held and safeguarded against loss, theft, or damage. This service is essential for clients who want to ensure that their investments are securely managed without incurring risks associated with physical handling or unauthorized access.

While custodial services also involve holding and managing securities, safekeeping specifically emphasizes the security aspect for assets already owned by the clients. Asset management, on the other hand, typically involves actively managing the investment portfolio on behalf of clients, including buying and selling securities to achieve financial goals, which is not the focus when dealing with fully paid-for securities already in client ownership. Brokerage services primarily facilitate the buying and selling of securities rather than providing secure keeping for already owned assets.