Article 28: Delegation by the Custodian

Article 28: Delegation by the Custodian

a. A custodian, in respect of any investment fund in relation to which the custodian acts, may delegate one or more third parties or affiliates as a fund sub-custodian. The remuneration of the fund sub-custodian shall be paid by the custodian out of its own resources.

b. With exception for cases described in Paragraph (c) of this Article, any fund sub-custodian delegated pursuant to Paragraph (a) of this Article must be delegated pursuant to a contract in writing and must be a capital market institution licensed to carry out the custody activity.

c. A fund sub-custodian operating in a jurisdiction other than the Kingdom may be delegated to take custody of the fund's assets in relation to the fund's foreign investments, and must be delegated pursuant to a contract in writing and shall be established, authorised and supervised in a jurisdiction that employs regulatory standards and requirements at least equivalent to those of the Authority.

d. The Authority shall have the discretion to assess whether the jurisdiction in which any fund sub-custodian, who operates outside the Kingdom, has regulatory standards and requirements at least equivalent to those of the Authority.

e. The fund sub-custodian delegated pursuant to the provisions of this Article, must not be the fund manager, the fund sub-manager, or any of their affiliates.