(1) In the case of an
Investment Company or an Investment Partnership, the Fund Manager is responsible to the Unitholders for the safekeeping of the Fund Property.
(2) Without removing the generality of the obligation under (1) and subject to (3), a
Fund Manager must, in the case of a Fund which is an Investment Company or Investment Partnership:
(a) delegate the 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 CIR section 8.12 in relation to such a delegation.
(3) The requirement in (2) does not apply to:
Property Fund in respect of Real Property:
(i) that is held by the
Fund Manager or by an Incorporated Cell Company in accordance with CIR Rule 13.4.2 or CIR 13.4.2A; or
(ii) for which the
Fund Manager has made adequate alternative arrangements in accordance with CIR Rule 13.4.2B;
Private Equity Fund where the Fund Manager has made adequate alternative arrangements that are in accordance with CIR Rule 13.3.1; or
Exempt Fund where the Fund Property:
(i) comprises of an interest in the operation of a
Real Property asset (such as an investment in an infrastructure project); and
Fund Manager makes alternative arrangements to ensure that the Fund Property is clearly distinguishable as belonging to the Fund, and is segregated from the assets of the Fund Manager and from the assets of any other Fund which the Fund Manager manages.