S.L. 370.32 Art. 55Liability of the depositary. Cap. 370.

(1) The depositary shall be liable for any loss or prejudice suffered by the scheme or the unit-holders due to the depositary’s fraud, wilful default or negligence including the unjustifiable failure to perform in whole or in part the depositary’s obligations arising pursuant to:

(a) the provisions of the Act, these regulations and the

Rules issued under the Act;

(b) the terms and conditions of the depositary agreement appointing the depositary;

(c) the conditions of any investment services licence; or

(d) such other requirements as may be prescribed by the competent authority.

(2) The depositary shall not be liable for any loss or prejudice suffered by the scheme or by the unit holders as a result of the acts or omission of the fund manager except where and to the extent that the depositary has failed to perform its functions and duties in terms of regulation 51.

(3) For the purposes of this regulation, "depositary" includes such other sub-depositary to whom functions, duties or assets may be delegated or entrusted in terms of regulation 56.