1. 1. Where safekeeping functions have been delegated wholly or partly to a third party, a depositary shall ensure that the third party to whom safekeeping functions are delegated pursuant to Article 22a of Directive 2009/65/EC acts in accordance with the segregation obligation laid down in point (c) of Article 22a(3) of that Directive 2009/65/ECby byensuring and verifying that the third party:
(a)correctly records all identified financial instruments in the financial instruments account, which is opened in the third party's books, in order to hold in custody the financial instruments for the depositary's clients, which excludes proprietary financial instruments of the depositary and of the third party and of the third party's other clients, to enable the depositary to match the quantity of the identified financial instruments recorded in the accounts opened in the depositary's books in the name of each of its UCITS clients or in the name of the management company acting on behalf of the UCITS;
(b)((a)) keeps all necessary records and financial instruments accounts to enable the depositary at any time and without delay to distinguish assets of the depositary's UCITS clients from itsthe third party own assets, assets of itsthe third party's other clients,clients and assets held byfor the depositary for its own account and assets held for clients of the depositary which are not UCITS;account;
(c)((b)) maintains records and financial securities accounts in a way that ensures their accuracy, and in particular their correspondence to the assets safe-keptkept safe for the depositary's clients;UCITS clients and on the basis of which the depositary can at any time establish the precise nature, location and ownership status of those assets;
(d)provides the depositary with a statement, on a regular basis and whenever a change in circumstances occurs, detailing the assets of the depositary's UCITS clients;
(e)((c)) conducts,conducts onreconciliations, aas regularoften basis,as reconciliationsnecessary, between theits depositary'sfinancial internalinstruments accounts and internal records and those of the third party to whom it has sub-delegateddelegated safekeepingcustody functions in accordance with thepoint third subparagraph(c) of Article 22a(3) of Directive 2009/65/EC;2009/65/EC.
The frequency of the reconciliation shall be determined in accordance with Article 13(1);
(f)((d)) introduces adequate organisational arrangements to minimise the risk of loss or diminution of financial instruments or of rights in connection with those financial instruments as a result of misuse of the financial instruments, fraud, poor administration, inadequate record-keeping or negligence;
(g)((e)) holds the UCITS' cash in an account or accounts with a central bank of a third country or a credit institution authorised in a third country, provided that the prudentialprudential, supervisory and regulatory requirements applied to credit institutions in that third country are considered by the competent authorities of the UCITS home Member States as at least equivalent to those applied in the Union, in accordance with point (c) of Article 22(4) of Directive 2009/65/EC.
2. 2. Paragraph 1 shall applyapplymutatis mutatis mutandis whenmutandiswhen the third party, to whom safekeeping functions are delegated in accordance with Article 22a of Directive 2009/65/EC, has decided to sub-delegate all or part of its safekeeping functions to another third party pursuant to the third subparagraph of Article 22a(3) of Directive 2009/65/EC.