Singapore legislation

Regulation 7A

of Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005

Regulation 7A

Operational requirements for custodian of non-umbrella VCC

Amended byS 170/2020 wef 16/03/2020

Subregulation 1

An approved trustee that is a custodian of a collective investment scheme constituted as a non-umbrella VCC must —

(a)

if, in the course of discharging the functions or duties of such custodian, it becomes aware that the non-umbrella VCC or its manager has contravened, in relation to the scheme, any legal or regulatory requirement applicable to the non-umbrella VCC or the manager, inform the Authority of the contravention no later than 3 business days after it becomes so aware; (b)ensure the safekeeping of all the property of the non-umbrella VCC in the following ways:

(i)

in a case where any property of the non-umbrella VCC is capable of being held in custody by the approved trustee as custodian — hold the property, including by means of taking delivery of the property or the documents of title in respect of the property;

(ii)

in any case — take appropriate measures to satisfy itself that each property purportedly owned by the non-umbrella VCC is in fact the property of the non-umbrella VCC, and record the measures taken;

(c)

maintain proper and up-to-date records of all the property of the non-umbrella VCC, and perform regular reconciliation of the records; and

(d)

ensure that the property (including the documents of title in respect of the property) of the non-umbrella VCC is kept distinct from —

(i)

that of the approved trustee;

(ii)

that of the manager of the non-umbrella VCC; and

(iii)

that held by the approved trustee on behalf of any other person.

Subregulation 2

Amended byS 170/2020 wef 16/03/2020

Despite paragraph (1)(d)(iii) but subject to paragraph (1)(c), where the approved trustee maintains a custody account in which it deposits any property that it holds on behalf of any other person, the property of the non-umbrella VCC may be deposited in the custody account together with such other property.