المادة 25: Appointment of the Custodian

Article 25: Appointment of the Custodian

a. The fund manager must appoint one or more custodians in the Kingdom to take custody of the assets of the investment funds which the fund manager manages. The custodian must be appointed pursuant to a written contract.

b. The custodian appointed pursuant to Paragraph (a) of this Article must not be a fund manager or a fund sub-manager to the relevant fund, or an affiliate of the fund manager or to the fund sub-manager.

c. The custodian appointed pursuant to Paragraph (a) of this Article must be a capital market institution licensed to carry out custody activity.

d. As an exception to the provisions of Paragraph (b) of this Article, the custodian of a feeder fund for public and private investment funds may become a fund manager for the relevant fund, a sub-manager of the relevant fund or an affiliate to the fund manager or the fund sub-manager, when fulfilling the following criteria:

1) Investing the feeder fund's assets in another investment fund, whether that investment is in or outside the Kingdom.

2) The custodian of the feeder fund shall not impose any additional fees on the fund.

3) The investment fund in which the feeder fund invests in shall be a closed ended fund.