PART II FORMATION, SUPERVISION AND CONTROL

General

Safekeeping of scheme property by depositary5

1

Subject to paragraph (2), all the scheme property of an open-ended investment company must be entrusted for safekeeping to a person appointed for the purpose (“a depositary").

2

Nothing in paragraph (1)—

a

applies to any scheme property designated for the purposes of this regulation by FSA rules;

b

prevents 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 sub-paragraph (i), authorising the third party to entrust all or some of those assets to other specified persons.

3

Schedule 1 to these Regulations makes provision with respect to depositaries of open-ended investment companies.