CIU-1.5.8
Custody activities involve safeguarding the assets of the
(a) To open, maintain and control CIU cash accounts with licensed banks (used for subscription and trading) in all relevant markets;
(b) To open and maintain CIU securities accounts with authorised institutions;
(c) To directly collect and receive all income and other payments, distributions and entitlements pertaining to a CIU ;
(d) To ensure that the cash flows of the CIU are properly monitored;
(e) To make all payments and settlements on behalf of and for the interest of the CIU , in accordance with the CIU investment objectives, offering documents and within the time limits set by the arrangements between the operator and the custodian ;
(f) To record the financial instruments and assets of the CIU in accounts segregated from the custodian’s own books and books of its other clients;
(g) To ensure that all assets belonging to the CIU are held in the name of the CIU or, where relevant market practices and/or legal requirements dictate, held on behalf of the CIU ;
(h) To execute any corporate actions;
(i) To maintain records and documentation relating to all transactions made on behalf of the CIU ;
(j) To provide the operator on a regular basis with a comprehensive inventory of all the assets of the CIU ;
(k) The financial instruments and assets of the CIU held in custody must not be reused by the custodian , or by any third party, for their own account. Reuse comprises any transaction of assets held in custody including, but not limited to, transferring, pledging, selling and lending;
(l) Any delegation of custodian role to sub-custodian must be approved by the operator and the custodian remains ultimately accountable for the custody and will be liable to the operator and CIU participants in case of any loss of the assets or financial instruments; and
(m) To reconcile the statements obtained from sub-custodians, brokers and agents, on a regular and timely basis with its own CIU records.
Added: April 2022