Global Custody Agreement (Genie AI)

The Global Custody Agreement (Genie AI) is a legal template that provides a framework for establishing an arrangement between a financial institution, acting as a global custodian, and its clients. This agreement outlines the terms and conditions related to the safekeeping, management, and settlement of various financial assets held by the custodian on behalf of its clients on a global scale.

The agreement covers essential aspects such as the scope of the custodial services, including the types of assets covered, such as equities, bonds, derivatives, and currencies. It also outlines the obligations and responsibilities of both the custodian and the client, ensuring clarity regarding asset custody, record-keeping, reporting, and performance measurement.

In addition, the Global Custody Agreement addresses the terms and conditions for the settlement of trades, either through the custodian's direct involvement or through a delegated sub-custodian network. It encompasses the procedures for the smooth transfer of assets, including the timelines, fees, and security measures inherent in these processes.

The template may also include provisions related to potential disputes, risk management measures, liability limitations, confidentiality, and termination of the custody relationship. These clauses aim to protect both parties and ensure compliance with applicable laws and regulations, such as those related to anti-money laundering, data protection, and financial market oversight.

By providing a standardized and comprehensive legal framework, the Global Custody Agreement (Genie AI) simplifies the process of establishing a custodial relationship between financial institutions and their clients on an international scale. It ensures clarity, minimizes potential legal conflicts, and facilitates efficient and secure asset management, ultimately benefiting both custodians and their clients.