S.L. 370.32 Art. 24Liability of the depositary. Cap. 370.

(1) The depositary shall be liable to the UCITS and to the unit-holders of the UCITS for loss by the depositary or a third party to whom the custody of financial instruments held in custody in accordance with regulation 21(1)(a) has been delegated.

(2) In the case of loss of a financial instrument held in custody, the depositary shall return a financial instrument of an identical type or the corresponding amount to the UCITS or the UCITS management company acting on behalf of the UCITS without undue delay:

Provided that the depositary shall not be liable if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary.

(3) The depositary shall also be liable to the UCITS and to the investors of the UCITS for all other losses suffered by them as a result of the depositary’s negligent or intentional failure to properly fulfil its obligations pursuant to the provisions of the Act, these regulations and the applicable Investment Services Rules.

(4) The liability of the depositary referred to in sub-regulations

(1) to (3) shall not be affected by any delegation as referred to in regulation 23.

(5) The liability of the depositary referred to in sub-regulations

(1) to (3) shall not be excluded or limited by agreement.

(6) Any agreement that contravenes the provisions of sub-regulation (5) shall be void.

(7) Unit-holders in the UCITS may invoke the liability of the depositary directly or indirectly through the UCITS management company or the UCITS itself provided that this does not lead to a duplication of redress or to unequal treatment of the unit-holders.