For example, banks have long bought and  BIS Review 70/2001  1  sold securities for their trust and fiduciary customers. These services are an essential part of the trust and fiduciary operations of banks-operations that have long been considered a core banking function.
Banks that have discretionary investment authority over a trust or fiduciary account purchase and sell securities for the account to ensure that the account is properly diversified and managed in the manner required by the governing trust agreement and applicable fiduciary principles.