What Happens When an Investor Does not Use the Services of a Third Party Custodian?

Sec 1, letter (c) of BSP Circular 457 series of 2004 states that any BSP regulated institution shall not enter into securities transactions with a client who has outstanding securities not delivered to a BSP accredited third party custodian.

From the foregoing, it is obvious that even as BSP claims that using a third party custodian is voluntary, the circular makes it very restrictive for an investor not to do so.