Common use of FCA Rules Clause in Contracts

FCA Rules. The rules of the FCA require the Custodian to inform the Issuer that: (a) where Securities Collateral are held outside the United Kingdom there may be different settlement, legal and regulatory requirements in jurisdictions outside the United Kingdom from those applying in the United Kingdom, or such jurisdiction as is appropriate in the circumstances, together with different practices for the separate identification of Securities Collateral and the Custodian will from time to time inform the Issuer of matters relevant to each jurisdiction in which Securities Collateral are held; (b) in providing the services described in this Agreement, the Custodian may hold Securities Collateral with Sub-Custodians who are in the same group as the Custodian; (c) although Securities Collateral will ordinarily be registered in the name of a nominee, the Custodian may from time to time (to the extent that if the Securities Collateral are subject to the law or market practice of a jurisdiction outside the United Kingdom and it is in the Issuer's best interests to register in that way or it is not feasible to do otherwise because of the nature of the applicable law or market practice) register or record the relevant Securities Collateral in the name of a Sub-Custodian, the Issuer, or the Custodian itself. If Securities Collateral are registered in the Custodian's name, the Securities Collateral in question may not be segregated from assets of the Custodian and, if there is a failure of the Custodian (for example, the appointment of a liquidator, receiver or administrator, or trustee in bankruptcy or any equivalent procedure in any relevant jurisdiction), the Issuer's assets may not be as well protected from claims made on behalf of the general parties of the Custodian. However, arrangements with each Sub-Custodian are such that the Securities Collateral with them shall be held in a separate account containing assets belonging only to the customers of the Custodian and not the Custodian's proprietary assets. In any event, the Custodian will notify the Issuer of the registered name in which the Securities Collateral are held; (d) the Custodian accepts the same level of liability for any nominee company controlled by the Custodian or an affiliate as for itself; (e) the accounts referred to in paragraph 1 (Custody Accounts/Securities Collateral) above are a form of pooling; (f) if the Issuer instructs the Custodian to hold the Securities Collateral with or register or record the Securities Collateral in the name of a person not chosen by the Custodian, the consequences of doing so are at the Issuer's own risk and the Custodian shall not be liable therefor; and (g) money held for the Issuer in an account with the Custodian will be held by the Custodian as banker and not as trustee and as a result, the money will not be held in accordance with the client money rules as set out in the rules of the FCA.