Document ID: chunk:federal_register_of_legislation:F2022C00868:reg:6:p1
Version: federal_register_of_legislation:F2022C00868
Segment Type: reg
Provision Reference: reg 6 (pt 1/3)
Character Range: 35629–38339

6     Thailand                            In the case of a scheme established as a mutual fund, the mutual fund supervisor appointed for the mutual fund under the Securities and Exchange Act B.E. 2535 (1992). In the case of a scheme established as a trust, the entity approved by the Securities and Exchange Commission under the Trust for Transactions in Capital Market Act B.E. 2550 (2007) to perform the custodial function of assets of the authorised scheme.

 (2) The function of holding passport fund assets may, subject to any limitation in the laws of the home economy for the fund, be delegated, or sub‑delegated, only if the responsible holding party remains legally responsible for the safekeeping of the fund's assets as if it held the assets itself.

Entities that hold passport fund assets
 (3) For this section, a custodian for a passport fund is an entity that holds assets of the passport fund.
 (4) The responsible holding party of a passport fund must ensure that:
 (a) each custodian meets one of the following criteria:
 (i) the custodian is authorised in its place of business to carry on a business of holding assets on behalf of others;
 (ii)  the asset holding activity of the custodian is subject to regulatory requirements in the home economy for the fund or the custodian's place of business; and
 (b) the operator is not the custodian.
Note: The effect of paragraph (b) in Australia is that, subject to subsection (1)),where the operator would otherwise hold the assets of a passport fund, the operator must delegate the function of holding the assets to another entity.

Assets must be accounted for
 (5) A custodian of the passport fund must ensure that the assets of the passport fund which it holds are properly accounted for as the passport fund's assets and identifiable as such in the custodian's records.

Assets must be held separately or in a permitted omnibus account
 (6) The custodian of a passport fund must hold the passport fund assets:
 (a) separately from assets that are not assets of the passport fund; or
 (b) in an omnibus account with the following characteristics:
 (i) it is managed in accordance with good custodial practice where the account is held and in accordance with reasonable standards;
 (ii) it is reconciled each business day in the place where the account is held;
 (iii) it does not also hold any assets of the custodian other than contingent amounts;
 (iv) the custodian recovers any contingent amount as soon as practicable.
 (7) For subsection (6), an amount paid into an omnibus account by the custodian is a contingent amount if:
 (a) it is paid solely to prevent the continuation of a shortfall that occurred because of circumstances that