S.L. 370.5 ст. 7Functions and duties of subject person.

(1) A subject person having the control of assets belonging to a customer shall safeguard such assets and the interest of the customer therein.

(2) The subject person shall carry out such functions and duties as shall be required in accordance with these regulations, the terms and conditions of the agreement entered into with the customer, the conditions of any investment services licence, and such other requirements as may be laid down by the competent authority.

(3) The subject person shall maintain proper and adequate records and accounts of all customers’ assets held under control. The records and accounts shall identify the customers to whom such assets belong and shall clearly indicate that the assets of every customer are separate and distinct from the assets belonging to the subject person and from other customers' assets held by the subject person. The records and accounts shall, upon due notice being given to the subject person, indicate where any pledge or other right over assets held under the control of the subject person has been given by the customers to any third parties, and where any order by any Court has been made in connection with such assets.

(4) The subject person shall maintain accurate records and accounts in a way that ensures accuracy, and in particular their correspondence to the instruments and money held for the customers and that they may be used as an audit trail.

(5) The subject person shall conduct, on a regular basis, reconciliations between its records and accounts and those of any third parties with whom customer’s instruments and money have been deposited in accordance with regulations 8 and 9.

(6) The subject person entrusted with the control of assets belonging to customers shall, to every extent reasonably possible, segregate in a proper manner the assets of every customer from the assets belonging to the subject person and from the assets of other customers:

Provided that the subject person may, with the written consent of the customer and in accordance with the terms and conditions of the agreement entered into with the customer, the conditions of any investment services licence and such other requirements as may be laid down by the competent authority and without prejudice to the customer's right of ownership over the assets held under control, place and keep such assets in a common pool of identical assets or otherwise deposit them in a clients’ or common account.

(7) The subject person shall make appropriate arrangements for the protection of customers' assets held under control and shall ensure that such assets are placed under adequate systems to safeguard such assets from damage, misappropriation or other loss and which permit the delivery of such assets only in accordance with the terms and conditions of the agreement entered into with the customer.

(8) Where it is not reasonably possible for the subject person to carry out any of the duties specified in this regulation due to the nature of the assets and of the arrangements whereby control is exercised, the said duties may be varied with the written consent of the customer and in accordance with the terms and conditions of the agreement entered into with the customer, the conditions of any investment services licence and such other requirements as may be laid down by the competent authority.

(9) The subject person shall take the necessary steps to ensure that any customer instruments deposited with a third party in accordance with regulation 8 are identifiable separately from the financial instruments belonging to the subject person and from the instruments belonging to that third party, by means of differently titled accounts on the books of the third party or other equivalent measures that achieve the same level of protection. (10)The subject person shall take the necessary steps to ensure that the money belonging to the customer deposited in accordance with regulation 9 with a central bank, a credit institution or a bank authorised in a third country or a qualifying money market fund, are held in an account or accounts separately identifiable from any accounts used to hold money belonging to the subject person. (11)The subject person shall implement adequate organisational arrangements to minimise the risk of the loss or diminution of assets belonging to the customer, or of rights in connection with those assets, as a result of misuse of the assets, fraud, poor administration, inadequate record-keeping or negligence. (12)If, for reasons of applicable law, including the law relating to property or insolvency, a subject person cannot comply with the provisions of this regulation to safeguard customers’ rights to satisfy the requirements of Articles 16(8) and (9) of MiFID, the subject person shall implement arrangements to ensure that customers’ assets are safeguarded to meet the objectives outlined in this regulation. (13)The competent authority shall issue Investment Services

Rules providing requirements which have an equivalent effect in terms of safeguarding customers’ rights if the applicable law of the jurisdiction in which the money or instruments belonging to the customer are held prevents the subject persons from complying with the provisions of sub-regulation (9) or (10) of this regulation:

Provided that when relying on such equivalent requirements as prescribed in sub-regulations (9) or (10), the subject persons shall inform customers that in such instances they do not benefit from the provisions envisaged under MiFID and the Commission Delegated Directive.