Sub-custodian: Difference between revisions

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-A topic of some recent interest in light of {{tag|AIFMD}} and {{tag|UCITS V}} legislation. Under both regimes a single [[depositary]] must be appointed having strict liability for the safe keeping of assets.
+{{a|cass|}}A [[sub-custodian]] is a sub-contractor appointed by a main custodian as part of its [[custody network]], to hold [[client asset]]s on behalf of a [[main custodian]] — usually to carry out functions that the main custodian can’t. for example, to hold assets in a jurisdiction where the [[main custodian]] has no licence to do so.
-Note though that being delegated a custody function is an altogether different thing to being a [[subcustodian]].
+A [[sub-custodian]] therefore doesn’t have a direct [[contract]]ual relationship with the client.<ref>Compare with a ''[[delegate]]'', who carries out the [[main custodian]]’s client-facing function on its behalf, as described below.</ref>
-A [[depositary]] who delegates its custody function won't hold the assets at all - it will pass that responsibility to the [[prime broker]], who will record the end client's interests in the custody assets directly in its books and records.
+{{subcustodian risk}}
-It may in turn appoint a [[subcustodian]] who will hold all the [[prime broker]]'s client assets in a single [[omnibus]] account, in the [[prime broker]]'s name but marked as "client assets" and therefore unavailable for the prime broker's creditors.
+{{delegate vs subcontractor}}
+===[[No lien letter]]s===
+{{No lien letters}}
+{{sa}}
-===See also===
 *[[Custodian]]
 *[[No lien letter]]
 *[[Prime broker]]
 *{{aifmdprov|Depositary}} ({{tag|AIFMD}})
-*{{ucitsprov|Depositary}} ({{tag|UCITS V}})
+*{{ucits5prov|Depositary}} ({{tag|UCITS V}})
-{{anat|cass}}
+{{ref}}