Define: Capitalis Custos

Capitalis Custos is a Latin term that translates to “capital guardian” in English. It refers to a legal concept where an individual or entity is entrusted with the responsibility of managing and safeguarding someone else’s capital or assets.

Any individual or entity, such as a financial institution, trust company, or professional fiduciary, can act as a Capitalis Custos. However, they must possess the necessary qualifications and meet the legal requirements set forth by the jurisdiction in which they operate.

The primary duty of a Capitalis Custos is to act in the best interests of the person or entity whose capital they are entrusted with. This includes managing and investing the capital prudently, ensuring compliance with applicable laws and regulations, and providing regular reports to the beneficiary.

The appointment of a Capitalis Custos is typically done through a legal agreement, such as a trust deed or power of attorney. The appointment may be made by the individual whose capital is being entrusted or by a court if the person is incapacitated or unable to make decisions.

Yes, a Capitalis Custos can be held liable for any losses incurred if they fail to fulfill their duties and responsibilities. However, the extent of liability may vary depending on the jurisdiction and the terms of the agreement between the parties involved.

Yes, a Capitalis Custos is generally entitled to charge reasonable fees for their services. The specific fee structure and amount should be agreed upon in advance and documented in the appointment agreement.

Yes, a Capitalis Custos is typically authorized to make investment decisions on behalf of the beneficiary, subject to any specific instructions or restrictions outlined in the appointment agreement. However, they must exercise their discretion prudently and in accordance with applicable laws and regulations.

Yes, a Capitalis Custos can be held accountable for fraud or misconduct if they engage in any illegal activities or breach their fiduciary duties. In such cases, the beneficiary or other interested parties may take legal action to seek compensation or other remedies.

While a Capitalis Custos has a duty to manage and invest the capital prudently, they are not typically held responsible for the performance of investments. However, if their actions or decisions are found to be negligent or in violation of their duties, they may be held liable for resulting losses.