1. The loss of a financial instrument held in custody within the meaning of regulation 15C of the Undertakings for Collective Investment in Transferable Securities Regulations 2011 shall be deemed to have taken place where, in relation to a financial instrument held in custody by the depositary or by a third party to whom the safekeeping of financial instruments 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, any of the following conditions is met:

(a) a stated right of ownership of the UK UCITS is demonstrated not to be valid because it either ceased to exist or never existed;

(b) the UK UCITS has been definitively deprived of its right of ownership over the financial instrument;

(c) the UK UCITS is definitively unable to directly or indirectly dispose of the financial instrument.

2. The ascertainment by the management or the investment company of the loss of a financial instrument shall follow a documented process readily available to the competent authority. Once a loss is ascertained, it shall be notified immediately to investors in a durable medium.