1. A depositary shall be deemed to comply with the requirements set out in rule 6.6B.18 of the Collective Investment Schemes sourcebook with respect to financial instruments to be held in custody where it ensures that:

(a) the financial instruments are properly registered in accordance with rule 6.6B.18(2) of the Collective Investment Schemes sourcebook;

(b) records and segregated accounts are maintained in a way that ensures their accuracy, and in particular record the correspondence with the financial instruments and cash held for UK UCITS;

(c) reconciliations are conducted as frequently as necessary between the depositary's internal accounts and records and those of any third party to whom safekeeping has been delegated in accordance with rules 6.6B.22, 6.6B.25, 6.6B.26 and 6.6B.27 of the Collective Investment Schemes sourcebook;

(d) due care is exercised in relation to the financial instruments held in custody in order to ensure a high standard of investor protection;

(e) all relevant custody risks throughout the custody chain are assessed and monitored and the management company or the investment company is informed of any material risk identified;