Document ID: chunk:federal_register_of_legislation:F2024L00375:body:0:p8
Version: federal_register_of_legislation:F2024L00375
Segment Type: other
Provision Reference: 
Character Range: 18203–21112

and (13) are met by the sub-custodian or such a person in relation to custodial property held by the sub-custodian or such a person (except to the extent that the licensee is not complying with a requirement under paragraphs 912AAC(6)(a) or (b) and the sub-custodian is not aware of any non-compliance);
other than in relation to matters:
(iii) that:
                         (A) are disclosed in writing to the financial services licensee; or
                         (B) the sub-custodian reasonably believes are trivial, and
                     (iv) for which the sub-custodian acknowledges that it or the person must continue to meet the relevant obligations; and
(c) to the effect that the sub-custodian must:
(i) acknowledge to the financial services licensee or as requested by the financial services licensee:
(A) the person for whom the custodial property is held on trust; and
(B)  that the custodial property is held for that person; and
(ii)  notify any other person that the property is so held where the sub-custodian is aware to do so might protect the rights or equitable interest of the person for whom the custodial property is held unless the financial services licensee directs in writing otherwise; and
(d) specifying how instructions will be given by the financial services licensee to the sub-custodian; and
(e) to the effect that the sub-custodian must not take or grant a security interest, mortgage, lien or other encumbrance over, or in relation to, the custodial property held under the agreement unless it is in accordance with the agreement and does not cover unpaid fees of the sub-custodian; and
(f) specifying how the sub-custodian will maintain records of the custodial property to which the agreement relates and the transactions in relation to that custodial property, including by whom, when and how transactions were authorised; and
(g) specifying procedures for reconciliation each business day or, if it is ordinary and reasonable commercial practice in the place the custodial property is located to reconcile certain property less frequently, in accordance with that practice, by checking information the sub-custodian is given as to the existence and quantity of the custodial property against the records of the sub-custodian and for reporting by the sub-custodian to the financial services licensee concerning the outcomes of the reconciliation in case of any unreconciled matter; and
(h) to the effect that the sub-custodian must provide all reasonable access and assistance to any auditor engaged to audit the financial services licensee's financial statements or to check the financial services licensee is complying with its agreement with its client; and
(i) to the effect that the sub-custodian will provide the financial services licensee with written notice of and contact information of any other person holding custodial property or to be engaged by the