|
Trustee / Depositary
The trustee /
depositary of an authorised fund
is responsible for the safekeeping
/ custody of scheme property,
although this is routinely
outsourced to the custodian. There
is also a general duty of
oversight to take reasonable care
to ensure that the scheme is
managed by the authorised fund
manager in accordance with the
regulations. The extent of this
oversight responsibility differs
from country to country and is
probably most extensive in the UK.
In
the UK the role of the depositary
extends to ensuring that the
Manager is complying with the
regulations in respect of: |
 |
Investment and borrowing powers |
|
|
Dealing |
|
|
Valuation and pricing |
|
|
Income:
accounting, allocation and
distribution |
|
|
Any provision
of the instrument constituting the
scheme or prospectus that relates
to the 4 points above.
|
|
Interview Tip
The
oversight of the depositary is commonly discharged
through a combination of office based review and
client visits. In some cases, the Depositary will be
reviewing the Managers controls to ensure they are
working correctly. In other cases, the Depositary
will almost be replicating (on a sample basis) the
work performed by the Manager, eg: |
|
|
Reviews to check that the investment
restrictions regulations are being complied with |
|
|
Reviews to ensure that the funds assets are
being properly priced |
|
|
Checks to ensure that the number of units in
issue are correct. |
|
|
For
good general information on the role of the
depositary in the UK, check out
chapters 7.4 and 7.5 of
the FSA CIS Handbook
The
Depositary will also have Technical Staff with
expert knowledge of the regulations. If you are
applying for such a role, you should ensure you are
familiar with recent and upcoming regulatory
developments.
See
www.funds-axis.com for regulatory developments
or our Regulatory Overview Questions and Answers. |
