law of 20 December 2002 - Alfi

conformity of a decision taken by the portfolio managers with the requirements of thelaw or the management regulations.Where in the cases referred to above the depositary does not have the possibility toperform these preliminary verifications itself or through its representatives, it must, inconjunction with the central administration in Luxembourg, set up supervision procedurescapable of ensuring the regularity of the transactions initiated by the portfoliomanagers in light of the requirements of the law or the management regulations.The possibility for the depositary not to execute itself all duties incumbent upon it andto be assisted by or to delegate to third parties, must not lead to a situation where allduties are concentrated in the hands of one and the same third party. Such a situationwould indeed be contrary to relevant legal provisions since its purpose would beto avoid the application thereof. Additionally, it would constitute a structure leading tounnecessary additional costs and could cast doubt on the Luxembourg nationality ofthe common fund.The prohibition of the concentration of duties to be executed by third parties in thehands of the same correspondent of the depositary does not apply to situations whereone single correspondent has been chosen for technical reasons. This is inter alia thecase (without being exclusive) in situations where investments are made on a singlemarket.2. Specific obligations of the depositary of a common fund subject to Part II of the lawof 30 March 1988.The depositary referred to herein has the same duties as the depositary of a common fundsubject to Part I of the law save that it is not obliged to ensure that the calculation of thevalue of units is carried out in accordance with the law and the management regulations.Subject to the conditions specified under the preceding heading 1., it may, to the sameextent as a depositary of a common fund subject to Part I, seek assistance from third partiesfor the execution of its tasks or entrust to its representatives the execution thereof.3. Specific obligations of the depositary of a SICAV or any other UCI which has notbeen constituted as a common fund.For this purpose no distinction is made between the depositary of a UCI subject to Part Iand the depositary of a UCI subject to Part II of the law of 30 March 1988.In addition to its role of custodian of the assets entrusted to it, the depositary referred toherein must:- ensure that the sale, issue, redemption and cancellation of units or shares effectedby or on behalf of the UCI are carried out in accordance with the law and the constitutionaldocuments;- ensure that in transactions involving the assets of the UCI, the consideration is remittedto it within the usual time limits;- ensure that the income of the UCI is applied in accordance with the constitutionaldocuments.107