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Custodian: Difference between revisions
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*A [[custodian]]’s main liability to its client is for the '''safekeeping''' and '''timely return''' of the [[client asset]]s. | *A [[custodian]]’s main liability to its client is for the '''safekeeping''' and '''timely return''' of the [[client asset]]s. | ||
*A [[custodian]] generally will segregate clients assets from its own assets. | *A [[custodian]] generally will segregate clients assets from its own assets. | ||
*The legal theory is that the client is the [[beneficial owner]] of the [[custody asset]]s at all times. Therefore, assuming the [[custodian]] diligently performs its role | *The legal theory is that the client is the [[beneficial owner]] of the [[custody asset]]s at all times. Therefore, assuming the [[custodian]] diligently performs its role [[custody asset]]s are not part of the Custodian’s [[insolvency estate]], and as such the [[custodian]] has no economic exposure to the [[custody asset]]s. | ||
===[[Sub-custodians]] and the [[custody network]]=== | ===[[Sub-custodians]] and the [[custody network]]=== | ||
Where a [[custodian]] has no physical presence in a local market, it will appoint a [[Custody network|network]] of [[sub-custodian]]s to hold client assets in that market on its behalf. Generally the [[sub-custodian]] must hold assets on the same terms that the custodian does: designated as [[client assets]] of the main custodian, and segregated in its records from its (and the custodian’s) own assets. | |||
===Weird jurisdictions=== | ===Weird jurisdictions=== | ||