Investor Presentaiton

SFC 4.7 Key operators - Custodian Eligibility For public OFCs, same requirements as to the type of entities and capital requirements as those under the UT Code; and 證監會 For private OFCs, (i) same requirements as to the type of entities and capital requirements as those under the UT Code; or (ii) a licensed corporation or registered institution licensed or registered for Type 1 regulated activity which meets eligibility criteria under 7.1(b)(ii) of the OFC Code Duties of custodian - - Statutory 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 (same for sub-custodian) Proper segregation of assets Safe-keeping and record keeping of assets Sufficient experience, expertise and competence in safekeeping the asset types in which the OFC invests Exercise due care in the selection, appointment and ongoing monitoring of its delegates, including sub-custodians Internal controls: Public OFC same as those under the UT Code - Private OFC OFC directors to review the adequacy of the custodian's internal controls which should be commensurate with the OFC's nature, scale, complexity and underlying investments - audit certificate not mandatory A non-Hong Kong custodian (i.e. a custodian incorporated outside Hong Kong) must have a process agent to receive any process or notice Exception: a non-Hong Kong custodian that is a "registered non-Hong Kong company" as defined in the CO, since the CO already provides for a local authorised representative for service of documents 16

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