Where is your money?

Types of accounts and custody models explained

In investments, it’s not only about what assets you invest in, but also how and where they are held.

The legal security, direct access, and level of control over a client’s assets depend on the type of account and the custody model you choose.

Security and control: the keys to independent custody
A proper custody model not only protects against bankruptcies or conflicts of interest, it also ensures transparency, direct access, and clear legal ownership.

At Nautic Invest, we always work under independent custody schemes, so that your money and your investments remain 100% safe and under your control.

Custody models and wealth security in the investment industry

Omnibus accounts vs. segregated accounts

  • Omnibus account: all assets from different clients are pooled into a single account under the name of the intermediary. It’s more efficient and cost-effective, but in the event of problems it can be difficult to identify individual ownership.

  • Segregated account: assets are registered under each client’s name in separate accounts. This provides greater legal security and ownership clarity, although sometimes at slightly higher costs.

Global custodian vs. local custodian

  • Global custodian: access to multiple markets and economies of scale, but with less proximity and slower response in certain legal cases.

  • Local custodian: closer relationship and better regulatory knowledge, though more limited in scope and usually with higher costs.

Who is the legal owner of your assets?

In traditional banking models, assets may be registered under the bank’s brokerage, not the client.

By contrast, in segregated custody accounts under the client’s own name, the legal owner is always the client. This determines the true protection of your wealth.

What happens if the advisor ceases to exist?

If the financial advisor ceases to exist, independent custody guarantees that the assets remain intact. The client keeps full control and can reassign a new advisor without any risks over ownership.