A custody fee schedule is the list of charges attached to a custody agreement. It sets out what a custodian will bill for looking after a client's assets. The two main components are a safekeeping fee, quoted in basis points a year on the value of assets held, and a transaction fee, charged as a flat amount for each trade settled. Both vary by market: developed markets are cheap, while emerging markets, where the custodian pays more to its local agents, cost more.
The schedule also lists charges for other services, such as asset servicing on complex events, tax reclaim processing, proxy voting, cash payments, reporting and out-of-pocket costs such as stamp duties and registration fees. Custodians also earn revenue outside the schedule from foreign exchange, cash balances and securities lending, so clients weigh the total cost of the relationship. Invoices are checked against the schedule and against reconciled holdings.