The ascertainment by the management or the investment company of the loss of a financial instrument shall follow a documented process readily available to the competent F4authority. Once a loss is ascertained, it shall be notified immediately to investors in a durable medium.

A financial instrument held in custody shall not be deemed to be lost within the meaning of F5regulation 15C of the Undertakings for Collective Investment in Transferable Securities Regulations 2011 where an F3UK UCITS is definitively deprived of its right of ownership in respect of a particular instrument, as long as that instrument is substituted by or converted into another financial instrument or instruments.

In the event of insolvency of the third party to whom the safekeeping of financial instruments has been delegated in accordance with F6rules 6.6B.22, 6.6B.25, 6.6B.26 and 6.6B.27 of the Collective Investment Schemes sourcebook, the loss of a financial instrument held in custody shall be ascertained by the management company or the investment company as soon as one of the conditions listed in paragraph 1 is met with certainty.

There shall be certainty as to whether any of the conditions set out in paragraph 1 is fulfilled at the latest at the end of the insolvency proceedings. The management company or the investment company and the depositary shall monitor closely the insolvency proceedings to determine whether all or some of the financial instruments entrusted to the third party to whom the safekeeping of financial instruments has been delegated in accordance with F6rules 6.6B.22, 6.6B.25, 6.6B.26 and 6.6B.27 of the Collective Investment Schemes sourcebook are effectively lost.

A loss of a financial instrument held in custody shall be ascertained irrespective of whether the conditions set out in paragraph 1 are the result of fraud, negligence or other intentional or non-intentional behaviour.