In these FAQs, terms that are defined under the SFO or subsidiary legislation (such as “depositary”, “relevant CIS”, “scheme documents”, “scheme assets”, “scheme money” and “scheme securities” etc.) have the same meanings as prescribed to these terms under the relevant legislation.
Q1 :
What documents may constitute “scheme documents” for a relevant CIS?
A:
Set out below is a non-exhaustive list of what scheme documents may include:
for a relevant CIS in trust form – the trust deed; or
for a relevant CIS in corporate or other non-trust form – the document(s) governing the formation or constitution of the relevant CIS (eg, the instrument of incorporation for an open-ended fund company (OFC); the articles of association for a mutual fund corporation),
and
for a relevant CIS in any form – other documents setting out requirements relating to one or both of the two core functions of the RA 13 depositary, (eg, custody agreement; custodian appointment agreement and services agreement, as the case may be).
Depositaries should take into account the specific circumstances of each relevant CIS when considering what documents might be “scheme documents” for a relevant CIS.
Q2 :
Would “scheme assets”, “scheme money” and “scheme securities” be considered “client assets”, “client money” and “client securities”?
A:In the context of RA 13, “scheme assets” may be regarded as a subset of “client assets”. “Scheme securities” and “scheme money” may also be regarded as a subset of “client securities" and “client money” respectively.
Last update: 30 Sep 2024
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