Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 6: AIF depositary / [28] Delegation of depositary tasks.

28. Delegation of depositary tasks.

(1) The depositary may delegate to a third party only the tasks referred to in article 24(3) of the Alternative Investment Fund Managers Law, provided that the fund rules or instruments of incorporation permit so∙ the third party shall be eligible, subject to the legislation of its home country, to undertake depositary tasks.

(2) The delegation of the depositary functions in accordance with section (1) shall be communicated to the external manager of the AIF or to the AIF, in case it is internally managed.

(3) The depositary may revoke the delegation of depositary tasks in accordance with section (1) at any time:

It is provided that the delegation shall be revoked when the tasks of the depositary are terminated, for any reason.

(4) The depositary shall exercise all due skill, care and diligence in the selection and the appointment of any third party to whom it wants to delegate parts of its tasks, and keeps exercising all due skill, care and diligence in the periodic review and ongoing monitoring of the third party, as well as the rules adopted and applied by the third party in relation to the delegated tasks∙ more specifically, the depositary shall ensure that the third party keeps, on an ongoing basis, the required records and accounts, in order to be able to segregate and identify, at any time and without any delay, the assets belonging to the depositary’s clients from its own assets and from the assets belonging to the depositary.

(5) The third party, upon whom the depositary functions are delegated, subject to section (1), may further delegate those functions, either partly or in total, to another party, provided that the sub-delegation shall comply with the terms of the initial delegation. In the case of the above-mentioned sub-delegation, article 27(3) shall apply proportionately.

(6) The Securities and Exchange Commission may, by means of a directive, specify -

(a) the organizational requirements with which the depositary referred to in section (1) shall comply to be able to provide services as a depositary∙ and

(b) the terms and conditions regarding the delegation of depositary tasks.