Due Diligence Template

The Due Diligence Template is a comprehensive tool designed to support financial services firms in conducting thorough assessments of third-party service providers — including banks, custodians, and other key partners. Delivered as an editable Microsot Word (.docx) file, this template streamlines the due diligence process and ensures consistency and completeness in your evaluations.

For CASS Oversight Officers, compliance teams, and operational risk managers, this template helps you:

• Structure your assessments: Pre-defined sections cover areas such as regulatory permissions, financial stability, control environments, and safeguarding arrangements.

• Capture key risk indicators: Identify and document critical risks and mitigations for each provider relationship.

• Support CASS compliance: Due diligence on banks and custodians is a core part of CASS 7 and CASS 6 oversight expectations.

• Strengthen governance: Create a clear audit trail of assessments and decision-making processes.

This tool is ideal for new relationships (e.g. onboarding a new bank or custodian) as well as for periodic reviews of existing partners. It’s fully editable to accommodate your firm’s specific risk framework, policies, and governance standards.

Key features include:

• Editable sections for firm-specific questions and risk appetite statements

• Columns to record responses, findings, and follow-up actions

• Clear status indicators to track progress and highlight red flags

• Flexibility to expand or tailor the checklist to your needs

Please note: This template is intended as a best practice guide to support robust due diligence processes. It should be used alongside your firm’s policies and risk appetite frameworks and is not a substitute for legal or regulatory advice.