PART IIFORMATION, SUPERVISION AND CONTROL

General

Safekeeping of scheme property by depositary5

1

Subject to paragraph (2) below, all the scheme property of an investment company with variable capital shall be entrusted for safekeeping to a person appointed for the purpose (“a depositary”).

2

Nothing in paragraph (1) above—

a

shall apply to any scheme property designated for the purposes of this regulation by SIB regulations;

b

shall prevent a depositary from—

i

entrusting to a third party all or some of the assets in its safekeeping; or

ii

in a case falling within paragraph (i) above, authorising the third party to entrust all or some of those assets to other specified persons.

3

Schedule 2 to these Regulations (which makes provision with respect to depositaries of investment companies with variable capital) shall have effect.