Regulatory Alerts2022-04-06
Principles and Guidelines - Custody of Fund Assets
The Seychelles Financial Services Authority has issued principles requiring mutual fund operators to entrust assets to functionally independent and properly segregated custodians. The framework mandates written custody agreements that clearly define liability, scope of responsibility, and sub-custodian appointment procedures, while enforcing ongoing compliance monitoring and accurate record-keeping for at least seven years. Furthermore, custodians must maintain insurance coverage, provide transparent investor disclosures, and promptly notify the Authority of any material changes affecting their custodial services.
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