S.L. 514.3 Art. 10Subject person may delegate functions and duties or entrust assets to another subject person.

(1) A subject person may, with the prior written approval of the competent authority, delegate part of the functions and duties under regulation 8 to another subject person who is qualified and competent to take the control of customers’ assets and may entrust or deposit all or part of a customer’s assets held under control with such other subject person.

(2) The liability of the subject person for its own acts or omissions under regulation 9 shall not be affected or reduced as a result of the subject person delegating functions and duties or entrusting all or part of the assets belonging to a customer, to another subject person.

(3) Where the subject person 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 subject person shall be liable for any loss or prejudice suffered by the customers as a result of the acts, omissions or insolvency of such person.

(4) Where the subject person 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 subject person shall be liable for any loss or prejudice suffered by the customers as a result of the acts or omissions of such person unless the subject person can prove that such person was and remains qualified and competent to carry out the functions and duties delegated and that the subject person exercised reasonable care to oversee that the functions and duties delegated were undertaken by such person competently.

(5) The liability of the subject person under sub-regulations (3) and (4) may be varied or reduced with the written consent of the customer or in accordance with the terms and conditions of the agreement entered into with the customer, 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 subject person shall disclose fully to the customer any risks that may be associated with the nature of the arrangements whereby control is to be exercised and that the agreement with the customer clearly defines the extent of liability of the subject person.

(6) This regulation shall not apply to a custodian as defined in regulation 2(2).