The investment banking business structure encompasses various divisions that work together to provide financial services. The main divisions are the investment banking division, sales and trading, research, asset management, risk management, operations, compliance and legal, corporate finance, technology and infrastructure, and relationship management. The role of a custodian is also critical, as they are responsible for safeguarding clients' securities, facilitating trade settlement and clearing, providing asset servicing functions, generating reports, managing cash flows, adhering to regulatory compliance, and offering client servicing.

1. Investment Banking
𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞
The 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 encompasses various components and entities that
work together to provide financial services and facilitate capital markets activities.
 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐃𝐢𝐯𝐢𝐬𝐢𝐨𝐧 (𝐈𝐁𝐃): The IBD is responsible for providing advisory services
and executing financial transactions for clients. It includes departments such as mergers and
acquisitions (M&A), corporate finance, capital markets, and restructuring.
 𝐒𝐚𝐥𝐞𝐬 𝐚𝐧𝐝 𝐓𝐫𝐚𝐝𝐢𝐧𝐠: This division focuses on the buying and selling of financial instruments,
including stocks, bonds, commodities, and derivatives.
 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡: Research analysts analyze various industries, companies, and markets to provide
insights and recommendations to clients.
 𝐀𝐬𝐬𝐞𝐭 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Asset management involves managing investment portfolios on behalf of
clients, such as institutional investors, high-net-worth individuals, and retail investors.
 𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Risk management teams assess and mitigate risks associated with the
firm's activities. They establish risk management policies, conduct risk assessments, and
implement controls to manage market, credit, operational, and regulatory risks.
 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: The operations department handles the administrative and logistical aspects of
investment banking operations. This includes trade settlement, clearance, accounting,
regulatory compliance, and technology infrastructure management.
 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐋𝐞𝐠𝐚𝐥: Compliance and legal teams ensure that the firm operates within
regulatory frameworks and adheres to applicable laws and regulations. They develop
compliance policies, monitor activities for compliance violations, and provide legal advice and
support.
 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞: Corporate finance professionals work with corporations in areas such as
capital structure optimization, financial planning and analysis, treasury management, and
corporate strategy. They advise companies on capital raising, debt issuance, and financial
decision-making.
 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐚𝐧𝐝 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞: The technology and infrastructure teams develop and
maintain the firm's technological infrastructure, trading platforms, risk management systems,
and data analytics capabilities. They play a crucial role in supporting investment banking
operations and ensuring smooth execution of financial transactions.
 𝐑𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Relationship managers are responsible for building and
maintaining strong relationships with clients. They act as the main point of contact for clients,
understand their financial needs, and provide personalized services and solutions.

2. The role of a 𝐜𝐮𝐬𝐭𝐨𝐝𝐢𝐚𝐧 in investment banking is critical for ensuring the safekeeping and management
of client assets. Custodians act as trusted intermediaries between investors and the financial markets.
They are responsible for safeguarding clients' securities and providing a range of services to support
investment activities.
 𝐒𝐚𝐟𝐞𝐤𝐞𝐞𝐩𝐢𝐧𝐠 𝐨𝐟 𝐀𝐬𝐬𝐞𝐭𝐬: Custodians are entrusted with the custody and safekeeping of clients'
securities, including stocks, bonds, and other financial instruments. They maintain secure
custody of these assets, protecting them from loss, theft, or damage.
 𝐒𝐞𝐭𝐭𝐥𝐞𝐦𝐞𝐧𝐭 𝐚𝐧𝐝 𝐂𝐥𝐞𝐚𝐫𝐢𝐧𝐠: Custodians facilitate the settlement and clearing of trades on
behalf of their clients. They ensure that transactions are completed accurately and efficiently,
coordinating with various parties involved, such as brokers, exchanges, and other custodians.
 𝐀𝐬𝐬𝐞𝐭 𝐒𝐞𝐫𝐯𝐢𝐜𝐢𝐧𝐠: Custodians provide a range of asset servicing functions, including income
collection, corporate actions processing (such as dividends, stock splits, and mergers), proxy
voting, and tax reclamation. They ensure that clients receive all entitlements and benefits
related to their investments.
 𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠: Custodians maintain accurate records of clients'
holdings and provide regular portfolio valuations. They generate comprehensive reports on
investment performance, cash flows, transaction history, and compliance with regulatory
requirements. These reports help clients monitor their investments and make informed
decisions.
 𝐂𝐚𝐬𝐡 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Custodians handle cash management services, such as cash settlements,
foreign exchange transactions, and interest calculations. They manage cash flows on behalf of
clients, ensuring timely and accurate processing of payments, receipts, and interest accruals.

3.  𝐑𝐢𝐬𝐤 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭: Custodians play a crucial role in managing and mitigating risks associated
with investment assets. They have robust systems and controls in place to identify, monitor, and
report risks, such as fraud, operational errors, and compliance breaches.
 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞: Custodians adhere to strict regulatory guidelines and compliance
requirements imposed by regulatory bodies. They ensure that all transactions and activities are
conducted in accordance with applicable laws and regulations, safeguarding clients' interests
and maintaining the integrity of the financial markets.
 𝐂𝐥𝐢𝐞𝐧𝐭 𝐒𝐞𝐫𝐯𝐢𝐜𝐢𝐧𝐠: Custodians provide personalized client servicing, acting as a primary point of
contact for investors. They address client inquiries, provide assistance with account
administration, and offer expert guidance on investment-related matters.