Ordinance of the Swiss Financial Market Supervisory Authority on Collective Investment Schemes

The cus­todi­an bank has the fol­low­ing spe­cial du­ties in re­la­tion to the set­tle­ment of the re­pur­chase trans­ac­tion:

a.

It en­sures that the re­pur­chase trans­ac­tion is settled in a se­cure and con­trac­tu­ally agreed man­ner.

b.

It en­sures that fluc­tu­ations in the value of the se­cur­it­ies used in repo trans­ac­tions are com­pensated for in cash or se­cur­it­ies (marked to mar­ket).

c.

For the dur­a­tion of the re­pur­chase trans­ac­tion it shall, in ad­di­tion, carry out the ad­min­is­trat­ive du­ties as­signed to it un­der the safe-cus­tody reg­u­la­tions and as­sert all rights as­so­ci­ated with the se­cur­it­ies used in the repo trans­ac­tion, un­less such du­ties have been ceded un­der the stand­ard­ised frame­work agree­ment.