FUNDS 12.12.5

Past version: effective from 21/10/2015 - 20/10/2015
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(1) When delegating, a Fund Manager or Trustee must:
(a) carry out due diligence on a proposed Service Provider to ensure eligibility prior to effecting a delegation of a Regulated Activity; and
(b) comply with the requirements in Chapter 3 of GEN and APP 1 and ensure that any delegation is made in a written Delegation Agreement as prescribed in APP 1.
(2) Delegation to a Service Provider does not relieve the Fund Manager or Trustee from accountability for the proper conduct of a delegated activity.
(3) The Regulator may, as a condition on a Fund Manager's or Trustee's Financial Services Permission, require the delegation of one or more specified Regulated Activities to a Service Provider.
(4) When delegating a "critical management" function, such as portfolio and/or risk management or other functions which are critical for the performance or management of the Fund, the Fund Manager must notify the Regulator, using such form as the Regulator may prescribe, at least seven calendar days prior to such delegation taking effect.