CHAPTER 2DEPOSITARY FUNCTIONS, DUE DILIGENCE DUTIES, SEGREGATION OBLIGATION AND INSOLVENCY PROTECTION...

Article 12Financial instruments to be held in custody

1.

Financial instruments belonging to the F1UK UCITS which are not able to be physically delivered to the depositary shall be included in the scope of the custody duties of the depositary where all of the following requirements are met:

(a)

they are financial instruments referred to in F2rules 5.2.6A(1) to (3), 5.2.8, 5.2.10A(1), 5.2.10E, 5.2.13 and other relevant rules in section 5.2 of the Collective Investment Schemes sourcebook or transferable securities which embed derivatives F3...;

(b)

they are capable of being registered or held in a securities account directly or indirectly in the name of the depositary.

2.

Financial instruments which, in accordance with applicable national law, are only directly registered in the name of the F1UK UCITS with the issuer itself or its agent, such as a registrar or a transfer agent, shall not be held in custody.

3.

Financial instruments belonging to the F1UK UCITS which are able to be physically delivered to the depositary shall in all cases be included in the scope of the custody duties of the depositary.