S.L. 514.3 Art. 21Custodian may delegate functions and duties or entrust assets to another person.

(1) The custodian may, with the prior written approval of the competent authority and with the consent of the retirement scheme or retirement fund, or with the consent of any other person responsible for the operation, administration and management of the retirement scheme or fund respectively, delegate all or part of the functions and duties under regulation 17 to another person and, may entrust or deposit all or part of the assets of the retirement scheme or retirement fund held in custody with such other person.

(2) The liability of the custodian for its own acts or omissions under regulation 20 shall not be affected or reduced as a result of the custodian delegating functions and duties or entrusting all or part of the assets of the retirement scheme or retirement fund, to another person in terms of sub-regulation (1).

(3) Where the custodian delegates or entrusts functions, duties or assets in terms of sub-regulation (1) to a person which is a group company, without prejudice to the liability of such person, the custodian shall be liable for any loss or prejudice suffered by the retirement scheme or retirement fund or by the members, beneficiaries or investors in such retirement scheme or retirement fund, as a result of the acts, omissions or insolvency of such person.

(4) Where the custodian delegates or entrusts functions, duties or assets in terms of sub-regulation (1) to a person which is not a group company, without prejudice to the liability of such person, the custodian shall be liable for any loss or prejudice suffered by the retirement scheme or retirement fund or by the members, beneficiaries or investors in such retirement scheme or fund, as a result of the acts or omissions of such person unless the custodian can prove that such person was and remains qualified and competent to carry out the functions and duties delegated to it and that the custodian exercised reasonable care to oversee that the functions and duties delegated were undertaken by such person competently.

(5) The liability of the custodian under sub-regulations (3) and

(4) may be varied or reduced with the written consent of the retirement scheme or retirement fund or with the consent of any other person responsible for the operation, administration and management of the retirement scheme or fund respectively, and in accordance with the terms and conditions of the agreement appointing the custodian, the deed or other instrument establishing or regulating the retirement scheme or fund, the conditions of licensing which may be required by the competent authority, and such other requirements as may be laid down by the latter from time to time:

Provided that the custodian shall disclose fully to the retirement scheme or retirement fund, any risks that may be associated with the nature of the custody arrangements, and the agreement appointing the custodian clearly defines the extent of liability of the custodian. Any such risks shall also be fully disclosed to the retirement scheme or retirement fund and to the members, beneficiaries or investors in the retirement scheme or fund.