Regulation 7B

if, in the course of discharging the functions or duties of such custodian, it becomes aware that the umbrella VCC or its manager has contravened, in relation to the scheme, any legal or regulatory requirement applicable to the umbrella VCC or the manager, inform the Authority of the contravention no later than 3 business days after it becomes so aware;

ensure the safekeeping of all the property of the umbrella VCC held on account of the sub-fund (called in this regulation the sub-fund’s property) in the following ways:

in a case where any sub-fund’s property 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;

in any case — take appropriate measures to satisfy itself that each property purportedly a sub-fund’s property is in fact the sub-fund’s property, and record the measures taken;

maintain proper and up-to-date records of all the sub-fund’s property, and perform regular reconciliation of the records; and

ensure that the sub-fund’s property (including the documents of title in respect of the property) is kept distinct from —

that of the umbrella VCC that is not held on account of the sub-fund;

that of the approved trustee;

that of the manager of the umbrella VCC; and

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

any property that it holds on behalf of any person; or

any property of the umbrella VCC that is not held on account of the sub-fund,the sub-fund’s property may be deposited in the custody account together with such other property.