• Chapter 6 Chapter 6 Custody

    • The activities

      • 43. Providing Custody

        (1) Each of the following activities —
        (a) safeguarding of Financial Instruments or other assets belonging to another;
        (b) in the case of a Fund, safeguarding Fund Property;
        (c) Acting as a Central Securities Depository; or
        (d) administering the assets, Financial Instruments or Fund Property for the purpose of sub-paragraphs (a) and (b);
        is a specified kind of activity.
        (2) For the purposes of this paragraph —
        (a) it is immaterial that title to the assets is held in uncertificated form; and
        (b) it is immaterial that the assets may be transferred to another person, subject to a commitment that they will be replaced by equivalent assets at some future date or when so requested by the person to whom they belong.

      • 44. Activities not constituting administration

        The following activities do not constitute the administration of assets for the purposes of paragraph 43

        (a) providing information as to the number of Units or the value of any assets in respect of which custody is provided;
        (b) converting currency; or
        (c) receiving Documents relating to an investment solely for the purpose of onward transmission to, from or at the direction of the person to whom the investment belongs.

      • 45. Other exclusions

        Paragraph 43 is also subject to the exclusions in paragraphs 74 (Trustees etc.), 75 (Profession or non-investment business), 76 (Sale of goods and supply of services), 77 (Groups and Joint Enterprises), 81 (Provisions of information on an incidental basis) and 82 (Insolvency Practitioners).

      • 46. Arranging Custody

        Arranging for one or more persons to carry on the activity described in paragraph 43 is a specified kind of activity.

      • 47. Exclusions

        (1) A person ("the introducer") does not Arrange Custody by introducing a person to another person ("the custodian") who is authorised by the Regulator or a Non-Abu Dhabi Global Market Regulator to carry on the activity described in paragraph 43, if the introducer is not connected with the custodian.
        (2) For the purposes of sub-paragraph (1) an introducer is connected to a custodian if —
        (a) the custodian is a member of the same Group as the introducer; or
        (b) the introducer is remunerated by the custodian or a member of the custodian's Group for making the introduction.