Custody

(1) The depositary must hold in custody the assets of the domestic AIF, or of the AIF management company acting for the account of the domestic AIF, as follows:
1. for financial instruments within the meaning of Directive 2011/61/EU that can be held in custody:
a) the depositary holds in custody all financial instruments that can be registered in a financial instruments account in its books, and all financial instruments that can be physically delivered to the depositary;
b) for this purpose, the depositary ensures that all financial instruments that can be registered in a financial instruments account in its books are registered, in accordance with the principles set out in Article 16 of Directive 2006/73/EC, in the books of the depositary on segregated accounts opened in the name of the domestic AIF or of the AIF management company acting for it, so that the financial instruments can at all times be clearly identified as belonging to the domestic AIF under applicable law;
2. for other assets:
a) the depositary verifies the ownership of the domestic AIF, or of the AIF management company acting for the account of the domestic AIF, of such assets and maintains records of those assets in respect of which it has satisfied itself that the domestic AIF, or the AIF management company acting for the account of the domestic AIF, has ownership;
b) the assessment as to whether the domestic AIF, or the AIF management company acting for the account of the domestic AIF, is the owner is based on information or documents provided by the domestic AIF or the AIF management company and, where available, on external evidence;
c) the depositary keeps its records up to date.
(2) The conditions for the exercise of a depositary's tasks under subsection (1), including
1. the types of financial instruments to be held in custody by the depositary under subsection (1), point 1,
2. the conditions under which the depositary may exercise its custody tasks over financial instruments registered with a central securities depository, and
3. the conditions under which the depositary must hold in custody, under subsection (1), point 2, financial instruments issued in registered form and registered with the issuer or a registrar, are determined by Articles 85 to 97 of Delegated Regulation (EU) No 231/2013.