COLL 11.4 Depositaries

An authorised fund manager of a feeder UCITS is responsible for communicating to the depositary of the scheme any information about the master UCITS which is required for the completion of the depositary's regulatory obligations.

Where a master UCITS and its feeder UCITS have different depositaries, the depositaries must enter into an information-sharing agreement in order to ensure fulfilment of their respective duties.

The information-sharing agreement referred to in COLL 11.4.1R (2) must include:

1. (a)

   identification of the documents and categories of information which are to be routinely shared between both depositaries, and whether that information or those documents are provided by one depositary to the other or made available on request;

2. (b)

   the manner and timing, including any applicable deadlines, of the transmission of information by the depositary of the master UCITS to the depositary of the feeder UCITS;

3. (c)

   the co-ordination of the involvement of both depositaries, to the extent appropriate in view of their respective duties under national law, in relation to operational matters, including:

   1. (i)

      the procedure for calculating the net asset value of each scheme, including any measures appropriate to protect against the activities of market timing in accordance with COLL 11.3.6 R (Avoidance of opportunities for market timing);

   2. (ii)

      the processing of instructions by the feeder UCITS to purchase, subscribe or request the repurchase or redemption of units in the master UCITS, and the settlement of those transactions, including any arrangement to transfer assets in kind;

4. (d)

   the co-ordination of accounting year-end procedures;

5. (e)

   what details the depositary of the master UCITS must provide to the depositary of the feeder UCITS of breaches by the master UCITS of the law and the instrument constituting the fund2 and how and when those details will be provided;

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6. (f)

   the procedure for handling ad hoc requests for assistance from one depositary to the other; and

7. (g)

   identification of particular contingent events which ought to be notified by one depositary to the other on an ad hoc basis, and how and when this will be done.

Where a master-feeder agreement exists in accordance with COLL 11.3.2R (1) (Master-feeder agreement and internal conduct of business rules), the information-sharing agreement between the depositaries must provide that:

1. (a)

   the law of the EEA State applying to the master-feeder agreement will also apply to the information-sharing agreement; and

2. (b)

   both depositaries agree to the exclusive jurisdiction of the courts of that EEA State.

Where the master-feeder agreement has been replaced by internal conduct of business rules in accordance with COLL 11.3.2R (2) (Master-feeder agreement and internal conduct of business rules), the information-sharing agreement between the depositaries must provide that:

1. (a)

   the law applying to the information-sharing agreement shall be either that of the EEA State in which the feeder UCITS is established or, where different, that of the EEA State in which the master UCITS is established; and

2. (b)

   both depositaries agree to the exclusive jurisdiction of the courts of the EEA State whose law is applicable to the information-sharing agreement.

Where a depositary of a master UCITS detects any irregularities with regards to the scheme which may have a negative impact on the relevant feeder UCITS, the depositary must immediately inform:

1. (a)

   the FCA;

2. (b)

   the feeder UCITS or, where applicable, its management company; and

3. (c)

   the depositary of the feeder UCITS.

The irregularities referred to in (1) include, but are not limited to:

1. (a)

   errors in the valuation of the scheme property performed in accordance with COLL 6.3.3 R (Valuation);

2. (b)

   errors in transactions for or settlement of the sale, issue, repurchase or redemption of units in the scheme undertaken by the feeder UCITS;

3. (c)

   errors in the payment or capitalisation of income arising from the scheme property, or in the calculation of any related withholding tax;

4. (d)

   breaches of the investment objectives, policy or strategy of the scheme as described in the instrument constituting the fund,2 the prospectus or the key investor information; and

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5. (e)

   breaches of investment and borrowing limits set out in COLL, the instrument constituting the fund,2 the prospectus or the key investor information.

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