S.L. 370.32 Art. 8Termination of appointment.

(1) The termination of the appointment of the depositary in accordance with the provisions of regulation 7 shall only come into force following the lapse of a transitional period of three months from the date of the notification to terminate the custody agreement, within which the scheme or the fund manager on behalf of the scheme is to appoint another depositary: Provided that the three-month transitional period shall not apply in the instances where the depositary agreement includes clauses which provide for its immediate termination.

(2) At any time prior to the expiration of the transitional period, the depositary and the scheme or the fund manager on behalf of the scheme may, by agreement, extend the transitional period.

(3) Where the scheme, the fund manager on behalf of the scheme or the depositary serves notice to terminate the appointment of the depositary, it shall simultaneously notify the competent authority of the intended termination of the appointment of the depositary and of the transitional period specified in sub-regulation (1).

(4) In the case where following the lapse of the transitional period, the scheme, or the fund manager on behalf of the scheme, fails to find a replacement for the outgoing depositary, the scheme, or the fund manager on behalf of the scheme shall immediately notify the competent authority.

(5) Following an assessment of the case, the outgoing depositary shall, in accordance with the directions given by the competent authority, provide the monitoring, safekeeping and oversight functions as the case may be in relation to the assets of the scheme:

Provided that, having regard to the circumstances of the case, the competent authority may also order the suspension of the collective investment scheme licence or the liquidation and winding up of the scheme.