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| {{ucits5prov|22a(1)}}. The {{ucits5prov|depositary}} may '''not''' delegate to third parties the fund administrator functions set out in Article {{ucits5prov|22(3)}} and {{ucits5prov|22(4)}} (subscriptions and redemption, calculating [[NAV]], cash monitoring etc). <br> | | {{Nutshell UCITS V 22a(1)}} |
| {{ucits5prov|22a(2)}}. The {{ucits5prov|depositary}} '''may''' delegate the safekeeping functions set out in Article {{ucits5prov|22(5)}} but only where: <br> | | {{Nutshell UCITS V 22a(2)}} |
| :(a) there is no intent to end-run the UCITS rules; <br>
| | {{Nutshell UCITS V 22a(3)}} |
| :(b) the {{ucits5prov|depositary}} can show an {{ucits5prov|objective reason}} for the [[delegation]];
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| :(c) the {{ucits5prov|depositary}} has exercised all due care in appointing and monitoring the delegate delegate’s continued performance. <br>
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| {{ucits5prov|22a(3)}}. The {{ucits5prov|depositary}} may delegate safekeeping functions only where that delegate: <br>
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| :(a) is competent to look after the assets of the {{tag|UCITS}} given to it; <br>
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| :(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>
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| :(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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| :(d) takes steps to ensure that if it is insolvent, the {{ucits5prov|UCITS}}’s assets thsat it holds are isolated from its creditors; and <br>
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| :(e) complies generally with Articles {{ucits5prov|22(2)}}, {{ucits5prov|22(5)}}, {{ucits5prov|22(7)}} and {{ucits5prov|25}}.<br>
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| :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:
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| :(a) the {{tag|UCITS}} investors are informed of these circumstances and the associated risks before they invest; <br>
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| :(b) the {{tag|UCITS}} management company has instructed the {{ucits5prov|depositary}} to make the delegation. <br>
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| :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>
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