(1) A Fund Administrator of a Foreign Fund for which it is carrying out the Regulated Activity of Acting as the Administrator of a Collective Investment Fund must have a service level agreement with the Foreign Fund Manager of that Foreign Fund setting out the functions and service standards that will be applied to the provision of such administration.
(2) The agreement in (1) must ensure that the Fund Administrator cannot in turn delegate the activities and functions delegated to it by the Foreign Fund Manager of the Foreign Fund unless the sub-delegate has been approved by that Foreign Fund Manager.
(3) The agreement in (1) must also require the Fund Administrator to retain any relevant work or records relating to the delegated activities and functions where the contract is terminated either by the Foreign Fund Manager or the Fund Administrator.
(4) The Regulator would expect any agreement required under this Rule 17.1.5 to include as a minimum the following provisions:
(a) unambiguous descriptions and definitions of the activities and functions to be provided by the Fund Administrator and the duties to be performed by both parties;
(b) an agreed standard in respect of resources and services supported as necessary by performance measures in accordance with the applicable legislation;
(c) the requirement for regular detailed reporting to a specified frequency from the Fund Administrator in respect of its duties and activities;
(d) provisions relating to the reporting of relevant events such as technological changes or error reporting and, in particular, any event which undermines the ability of the Fund Administrator to fulfil its duties;
(e) the requirement for an annual review (at a minimum) of the performance of the functions by the Fund Administrator; and
(f) provisions relating to records and adequate access by the Foreign Fund Manager, the Fund's auditor or any other Persons providing control or risk management functions for the Fund, as required by the Foreign Fund Manager or applicable laws to that Fund.