Document ID: chunk:federal_register_of_legislation:F2023C00928:reg:8:p17
Version: federal_register_of_legislation:F2023C00928
Segment Type: reg
Provision Reference: reg 8 (pt 17/34)
Character Range: 55709–58679

that the custodian has a written agreement with each person that the custodian engages to hold client portfolio assets and the written agreement meets the requirements of paragraphs (c) to (e) as if the person were the custodian and the custodian were the licensee except:
                         (A) to the extent that, in relation to client portfolio assets held outside of this jurisdiction, the licensee holds documents that demonstrate that it is not reasonably practicable to engage another person to hold the client portfolio assets who is willing to include such matters in the agreement; or
                         (B) where the person is controlled by the custodian and the custodian is liable to its client for the acts and omissions of the person as if they were the acts or omissions of the custodian; and
                  (c) the agreement with the custodian has provisions:
                     (i) specifying reasonable rights that the licensee has for the ongoing review and monitoring of the custodian and any sub-custodian and the standards against which their performance will be assessed; and
                     (ii) to the effect that the custodian must certify to the licensee in writing at least every 13 months that the custodian believes on reasonable grounds that the custodian and each sub-custodian have met since the date of the previous statement in writing or the commencement of the agreement, and the custodian has no reason to believe that the custodian and each sub-custodian will not continue to meet:
                         (A) in the case of the custodian, the terms of the agreement; and
                         (B) in any case, the requirements that the licensee must do all things necessary to ensure under subsections (5) to (13), paragraph (15)(b) and subsection (17) are met by the custodian or the sub-custodian in relation to the client portfolio assets held by the custodian or a sub-custodian (except to the extent that the licensee is not complying with a requirement under paragraphs (6)(a) or (b) and the custodian is not aware of any non-compliance);
              other than:
                         (C) as disclosed in writing to the licensee; or
                         (D) that the custodian reasonably believes are trivial, and

                     the custodian acknowledges that it or the sub-custodian must continue to meet those obligations; and

                     (iii) to the effect that the custodian must acknowledge to the licensee on request that client portfolio assets to which the agreement relates are held on trust and for whom they are held on trust and notify any other person where the custodian is aware to do so might protect the rights or equitable interest of the licensee or the client that the assets are so held unless the licensee directs in writing otherwise; and
                     (iv) specifying how instructions will be given by the licensee to the custodian; and