• FUNDS 12.3.2 FUNDS 12.3.2

    (1) In the case of any Fund other than an Investment Trust, the Fund Manager is responsible to the Unitholders for ensuring the safekeeping of the Fund Property in accordance with these Rules.
    (2) Without removing the generality of the obligation under (1), and subject to Section 12.3.3 below a Fund Manager must, unless it is both impracticable and disproportionate to do so, in the case of a Fund structured other than as an Investment Trust:
    (a) delegate the Regulated Activity of Providing Custody in relation to the Fund Property to a Service Provider who is an Eligible Custodian; and
    (b) comply with the delegation procedures set out in Rule 12.12 in relation to such a delegation.

    • Guidance

      1. Rule 12.3.3 below sets out the circumstances in which a Fund Manager of a Domestic Fund would not be required to appoint an Eligible Custodian.
      2. Rule 12.12 governs the power of a Fund Manager to delegate certain of its Regulated Activities, and to outsource its functions.
      3. Rule 12.3.2(1) is not intended to confer strict liability for the safekeeping of Fund Property on a Fund Manager.