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

The cus­todi­an bank has the fol­low­ing spe­cial du­ties in con­nec­tion with the set­tle­ment of the se­cur­it­ies lend­ing trans­ac­tion:

a.

It shall in­form the fund man­age­ment com­pany or SICAV on a reg­u­lar basis of the lend­ing trans­ac­tions con­duc­ted.

b.

It shall, at least once a month, ac­count for any in­come earned on the se­cur­it­ies lend­ing.

c.

It shall en­sure that the se­cur­it­ies lend­ing trans­ac­tions are settled in a se­cure man­ner, in line with the agree­ments and, in par­tic­u­lar, it shall mon­it­or com­pli­ance with the re­quire­ments re­lat­ing to col­lat­er­al.

d.

In ad­di­tion, it shall carry out the ad­min­is­trat­ive du­ties as­signed to it un­der the safe-cus­tody reg­u­la­tions dur­ing the term of the lend­ing trans­ac­tion and as­sert all rights as­so­ci­ated with the loaned se­cur­it­ies, un­less such du­ties have been ceded un­der the terms of the stand­ard­ised frame­work agree­ment.