Foreign Custodian Clause Samples

The Foreign Custodian clause defines the terms under which a custodian located outside the home jurisdiction is appointed to hold assets or securities on behalf of a client. This clause typically outlines the responsibilities of the foreign custodian, the standards they must meet, and the risks associated with holding assets in another country, such as differences in legal protections or regulatory oversight. Its core practical function is to clarify the allocation of risk and responsibility when assets are held abroad, ensuring that both parties understand the implications and safeguards involved.