Sub Custodians and Agents Clause Samples

The "Sub-Custodians and Agents" clause defines the conditions under which a custodian may appoint third parties, such as sub-custodians or agents, to hold or manage assets on behalf of the client. Typically, this clause outlines the standards for selecting these third parties, the extent of the custodian’s responsibility for their actions, and any notification or approval requirements. For example, it may specify that the custodian must exercise due care in choosing sub-custodians or that certain jurisdictions require client consent. The core function of this clause is to clarify the delegation of asset-holding duties and allocate responsibility, thereby managing risk and ensuring transparency in the safekeeping of assets.