Custodial Statement And Agreement Template for Canada

The Custodial Statement and Agreement is a crucial document used when establishing a formal relationship between a financial institution acting as custodian and a client requiring safekeeping of their financial assets. This agreement is particularly relevant in the Canadian financial services landscape, where it must comply with federal banking regulations, provincial securities laws, and other relevant legislation. The document is essential for institutional investors, high-net-worth individuals, and organizations requiring professional custody services for their securities, cash, and other financial assets. It encompasses comprehensive details about asset safekeeping, transaction processing, reporting requirements, fee structures, and the respective rights and obligations of both parties, while incorporating specific provisions required under Canadian law.

1. Parties: Identification of the custodian and the client, including full legal names and addresses

2. Background: Context of the agreement and brief description of the custodial relationship

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment of Custodian: Formal appointment and acceptance of the custodian role and scope of services

5. Custody of Assets: Details of how assets will be held, registered, and segregated

6. Custodian's Duties and Responsibilities: Comprehensive list of the custodian's obligations including safekeeping, record-keeping, and reporting

7. Client's Duties and Responsibilities: Client's obligations including providing instructions and maintaining accurate information

8. Authorized Instructions: Process for giving and accepting instructions regarding the assets

9. Fees and Expenses: Structure and payment terms for custodial services

10. Reporting and Statements: Frequency and content of account statements and reports

11. Security Interest and Liens: Rights of the custodian regarding liens and security interests in the assets

12. Liability and Indemnification: Extent of custodian's liability and mutual indemnification provisions

13. Confidentiality and Privacy: Obligations regarding the protection of confidential information and personal data

14. Term and Termination: Duration of agreement and circumstances for termination

15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution

16. General Provisions: Standard clauses including amendments, assignments, and notices