Investor Presentaiton
7. Practical tips and common misconceptions
Custodians
■ Q: Can multiple custodians be appointed and what would be the rights
and liabilities of each custodian?
SFC
證監會
Appointment of multiple custodians is permitted, including by the appointment of a
different custodian for each sub-fund
Where multiple custodians are to be appointed, the instrument of incorporation
and/or custodian agreement of the OFC should include relevant provisions - e.g.
to ensure all scheme property must be duly entrusted to the custodian(s) of the
OFC and demarcate the rights and liabilities of each custodian clearly
Each custodian appointed by an OFC is subject to the duty to take reasonable
care, skill and diligence to ensure the safe keeping of the scheme property of the
OFC that is entrusted to it (section 112ZA(4) of the SFO)
Each custodian should also observe the custody requirements in the OFC Code,
including to:
hold in its custody the scheme property that is entrusted to it which can be so
held and maintain a proper record of all other scheme property entrusted to it;
ensure it has sufficient experience, expertise and competence in safekeeping
the asset types; and
o maintain adequate internal controls and systems
May refer to OFC FAQs Question 23 for more details
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