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    How does a broker act as a trustee during a deal?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    When a broker receives amounts, securities, or bonds for safekeeping or delivery to another party, they are legally deemed a trustee. The broker must return or deliver these items exactly as per the stipulated conditions. They are governed by strict trusteeship rules, and any misappropriation of these funds is a serious violation. This ensures that brokers handle sensitive financial instruments and deposits with the highest level of care and professional responsibility.

    Related Topics:

    Broker Trustee
    Safekeeping Funds
    Financial Responsibility
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