Template:Nutshell UCITS V 22a(3): Difference between revisions

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{{ucits5prov|22a(3)}}.  The {{ucits5prov|depositary}} may delegate safekeeping functions only where that delegate: <br>
{{ucits5prov|22a(3)}}.  The {{ucits5prov|depositary}} may delegate safekeeping functions only where that delegate: <br>
:(a) is competent to look after the assets of the {{tag|UCITS}} given to it; <br>
:(a) is competent to look after the assets of the [[UCITS]] given to it; <br>
:(b) where it holds custodiable assets, the delegate is properly prudentially regulated in its it its own jurisdiction and regularly audited on its custody holdings; <br>
:(b) where it holds custodiable assets, the delegate is properly prudentially regulated in its it its own jurisdiction and regularly audited on its custody holdings; <br>
:(c) effectively segregates the UCITS assets from its own assets and those of the {{ucits5prov|depositary}} so they can be clearly identified as belonging to clients of the depositary<ref>Does this leave the door open for omnibus segregation of different funds managed by the same depositary?</ref>; <br>  
:(c) effectively segregates the UCITS assets from its own assets and those of the {{ucits5prov|depositary}} so they can be clearly identified as belonging to clients of the depositary<ref>Does this leave the door open for omnibus segregation of different funds managed by the same depositary?</ref>; <br>  
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:(e) complies generally with Articles {{ucits5prov|22(2)}}, {{ucits5prov|22(5)}}, {{ucits5prov|22(7)}} and {{ucits5prov|25}}.<br>
:(e) complies generally with Articles {{ucits5prov|22(2)}}, {{ucits5prov|22(5)}}, {{ucits5prov|22(7)}} and {{ucits5prov|25}}.<br>
:Where local rules require financial instruments to be held by a local custodian and none are effectively regulated or audited, the {{ucits5prov|depositary}} may delegate to a non-compliant local custodian only as far as is required by those local rules, and only as long as there are no compliant local custodians, and only where:
:Where local rules require financial instruments to be held by a local custodian and none are effectively regulated or audited, the {{ucits5prov|depositary}} may delegate to a non-compliant local custodian only as far as is required by those local rules, and only as long as there are no compliant local custodians, and only where:
:(a) the {{tag|UCITS}} investors are informed of these circumstances and the associated risks before they invest; <br>
:(a) the [[UCITS]] investors are informed of these circumstances and the associated risks before they invest; <br>
:(b) the {{tag|UCITS}} management company has instructed the {{ucits5prov|depositary}} to make the delegation. <br>
:(b) the [[UCITS]] management company has instructed the {{ucits5prov|depositary}} to make the delegation. <br>
:The delegate may sub-delegate on the same terms. In such a case, Article {{ucits5prov|24(2)}} shall apply ''[[mutatis mutandis]]'' to the relevant parties. <br>
:The delegate may sub-delegate on the same terms. In such a case, Article {{ucits5prov|24(2)}} shall apply ''[[mutatis mutandis]]'' to the relevant parties. <br>

Latest revision as of 13:30, 14 August 2024

22a(3). The depositary may delegate safekeeping functions only where that delegate:

(a) is competent to look after the assets of the UCITS given to it;
(b) where it holds custodiable assets, the delegate is properly prudentially regulated in its it its own jurisdiction and regularly audited on its custody holdings;
(c) effectively segregates the UCITS assets from its own assets and those of the depositary so they can be clearly identified as belonging to clients of the depositary[1];
(d) takes steps to ensure that if it is insolvent, the UCITS’s assets that it holds are isolated from its creditors; and
(e) complies generally with Articles 22(2), 22(5), 22(7) and 25.
Where local rules require financial instruments to be held by a local custodian and none are effectively regulated or audited, the depositary may delegate to a non-compliant local custodian only as far as is required by those local rules, and only as long as there are no compliant local custodians, and only where:
(a) the UCITS investors are informed of these circumstances and the associated risks before they invest;
(b) the UCITS management company has instructed the depositary to make the delegation.
The delegate may sub-delegate on the same terms. In such a case, Article 24(2) shall apply mutatis mutandis to the relevant parties.
  1. Does this leave the door open for omnibus segregation of different funds managed by the same depositary?