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LSDefine
Simple English definitions for legal terms
safekeeping
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A quick definition of safekeeping:
Safekeeping: Keeping something safe and protected while it is in your care. This can include holding onto someone's valuable item or money for them, or protecting a security that someone has invested in.
A more thorough explanation:
Definition: Safekeeping refers to the act of protecting something that is in one's custody. It can also refer to the holding of a security on behalf of the investor or broker that has paid for it, as defined by the Securities Investors Protection Act.
Examples:
- A bank may offer safekeeping services for valuable items such as jewelry or important documents.
- A brokerage firm may provide safekeeping for securities purchased by their clients.
The examples illustrate how safekeeping involves the responsibility of protecting something that is entrusted to one's care. In the case of a bank, they are responsible for keeping valuable items secure and preventing them from being lost or stolen. In the case of a brokerage firm, they are responsible for holding securities on behalf of their clients and ensuring that they are not lost or mishandled.