Whole Section

  • 6 Duties of Depository Agents

    • 6.1 Opening of Sub-Accounts

      A Depository Agent shall carry out the following obligations and obtain an external auditors' certification that it has complied with such obligations:

      6.1.1 open and maintain one or more Sub-Accounts for all Deposited Securities held for its own account.
      6.1.2 open and maintain a separate Sub-Account for each of its clients for all Deposited Securities held on account of such clients.
      6.1.3 at all times segregate the Deposited Securities held in each Sub-Account from those held in other Sub-Accounts.
      6.1.4 at all times segregate Deposited Securities held for its own account from Deposited Securities held for the account of each of its clients.

      For the purpose of Rules 6.1.2 and 6.1.4, the Depository Agent's clients shall include clients of the Depository Agent's clients who are the beneficial owners of the Deposited Securities.

    • 6.2 Records

      A Depository Agent shall maintain up-to-date records of Sub-Account Holders, containing such information as the Depository may specify from time to time.

    • 6.3 Disclosure of Sub-Account Holders' Information

      A Depository Agent shall disclose to the Depository such information as the Depository may require in relation to Sub-Account Holders if in the opinion of the Depository:

      6.3.1 such information is required in order to monitor foreign ownership or other shareholding limits imposed by law or by an Issuer;
      6.3.2 such information is required by any applicable law, regulation or order of any government, court, tribunal or other competent authority or by any contractual obligation imposed or binding on the Depository or any of its nominee(s);
      6.3.3 such information is required for purposes of investor protection; or
      6.3.4 the Depository Agent is required to provide such information to the Depository pursuant to the Depository Agent Terms.
    • 6.4 External Auditor's Certification

      The Depository Agent shall, within five (5) calendar months after the close of each financial year, cause its external auditors to certify in writing in a manner acceptable to the Depository, that its obligations in Rule 6.1 and such other obligation as prescribed by the Depository from time to time, have been duly complied with.

    • 6.5 Failure to Submit within Deadlines

      6.5.1 Where a Depository Agent fails to submit any auditors' certification required by the Depository within the prescribed deadlines, the Depository may reprimand the Depository Agent either publicly or privately, unless an extension of time is granted.
      6.5.2 Any request for an extension of time shall be submitted to Depository at least seven (7) business days before the expiry of the prescribed deadline.
    • 6.6 Appointment of Another Auditor

      The Depository may, if it is not satisfied with the certification of the Depository Agent's external auditors, or where the Depository considers it appropriate, at any time appoint another auditor to render a certification required under Rule 6.4, and the costs and expenses incurred by the Depository in respect thereof shall be borne by the Depository Agent.

    • 6.7 Binding Terms

      A Depository Agent shall abide by and be bound by the Depository Agent Terms.