• Eligible Custodian

    • FUNDS 12.3.7 FUNDS 12.3.7

      (1) A Fund Manager to whom this Chapter applies must:
      (a) ensure that there is appointed to the Fund a Fund Administrator or a Trustee licensed by the Regulator or such other administrator or trustee as is otherwise acceptable to the Regulator (hereafter referred to as the "Appointed Fund Administrator" or "Appointed Trustee"); and
      (b) subject to Rules 12.3.2 and 12.3.3 ensure that there is appointed to the Fund an Eligible Custodian,
      before commencing the management of that Fund.

      • Guidance

        A Fund Manager of a Domestic Fund may be able to perform fund administration for the Fund in circumstances where risk management and portfolio functions are adequately separated (Rule 12.3.10).

    • FUNDS 12.3.8

      For the purposes of these Rules, an Eligible Custodian is a Person who is a separate legal entity from the Fund Manager and who also meets one of the following criteria:

      (a) an Authorised Person whose Financial Services Permission authorises it to Provide Custody Services;
      (b) an Authorised Person that is a Bank;
      (c) a Recognised Body;
      (d) a legal entity that is authorised and supervised by a Financial Services Regulator in a Recognised Jurisdiction for providing custody services in respect of a Fund and is subject to a minimum capital requirement of $4 million or its equivalent in any other currency at the relevant time and has had surplus revenue over expenditure for the last two financial years;
      (e) a legal entity where it, or its holding company, is:
      (i) in respect of its financial strength, rated or graded as at least "investment grade" by Moody's, Fitch or Standard & Poor's or such other international rating agency as may be recognised by the Regulator; and
      (ii) authorised and supervised by a Financial Services Regulator in another jurisdiction which is a Zone 1 country; or
      (f) a legal entity that is authorised or recognised by a Financial Services Regulator to operate as an exchange or a clearing house in a Recognised Jurisdiction;
      (g) a legal entity that is and remains:
      (i) controlled and wholly owned by one or more of the national governments of the six member states of the Gulf Cooperation Council;
      (ii) authorised and supervised by a Financial Services Regulator or Central Bank of at least one of the said national governments; and
      (iii) rated or graded as at least "investment grade" by Moody's, Fitch or Standard & Poor's or such other international rating agency as may be recognised by the Regulator; or
      (h) any other legal entity otherwise acceptable to the Regulator: