CHAPTER 2U.K.DEPOSITARY FUNCTIONS, DUE DILIGENCE DUTIES, SEGREGATION OBLIGATION AND INSOLVENCY PROTECTIONF1...

Article 6U.K.Duties regarding the carrying out of the [F2UK UCITS]' instructions

A depositary shall be deemed to comply with the requirements set out in [F3rule 6.6B.16(3) of the Collective Investment Schemes sourcebook] where it establishes and implements at least:

(a)

appropriate procedures to verify that instructions of the management company or the investment company comply with applicable laws and regulations and with the [F2UK UCITS]' rules and instruments of incorporation;

(b)

an escalation procedure where the [F2UK UCITS] has breached one of the limits or restrictions referred to in second subparagraph.

For the purposes of point (a), the depositary shall in particular monitor the [F2UK UCITS]' compliance with investment restrictions and leverage limits to which the [F2UK UCITS] is subject. The procedures referred to in point (a) shall be proportionate to the nature, scale and complexity of the [F2UK UCITS].