Custodian duty of confidentiality and due diligence required in custody operations, ensuring client protection and regulatory compliance. Custodians must maintain high standards of integrity and professionalism, exercise due diligence in safekeeping client assets, promptly distribute income accruals, preserve client confidentiality, ensure continuity and backup of electronic records, maintain traceable records and complete audit trails for movements of securities and cash, and establish adequate infrastructure and documented operating procedures to protect operations and clients from theft, fraud or misconduct.