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Custodian: Difference between revisions
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==Generally== | {{a|pb|}}''You see [[custodian]]s mentioned in the context of a [[bankruptcy]], as some kind of [[insolvency administrator]]. That’s a different sort of [[custodian]] and not really what we're talking about here, which is the [[safekeeping]] of [[client asset]]s'' | ||
*A | ===Generally=== | ||
*A custodian generally will segregate clients assets from its own assets. | *A [[custodian]]’s main liability to its client is for the '''safekeeping''' and '''timely return''' of the [[client asset]]s. | ||
*The legal theory is that the client is the beneficial owner of the custody | *A [[custodian]] generally will segregate clients assets from its own assets. | ||
**Custody | *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 | **[[Custody asset]]s will not form part of the Custodian’s [[insolvency estate]]. | ||
**The [[custodian]] has no economic exposure to the [[custody asset]]s. | |||
===Appointment of [[sub-custodians]]=== | ===Appointment of [[sub-custodians]]=== | ||