(1) Where the assets of a scheme or trust RAC consisting of financial instruments that can be held in custody are entrusted to a depositary for safekeeping, the depositary shall -
(a) hold in custody all financial instruments which can be registered in a financial instruments account opened in the depositary's books and all financial instruments that can be physically delivered to the depositary, and
(b) ensure that the financial instruments which can be registered in a financial instruments account opened in the depositary's books are registered in the depositary's books within segregated accounts in accordance with the rules laid down in Directive 2014/65/EU, opened in the name of the trustees of the scheme or trust RAC, so that they can be clearly identified as vested in those trustees on behalf of the members and beneficiaries of that scheme or trust RAC at all times.
(2) Where the assets of a scheme or trust RAC consist of other assets that are not referred to in subsection (1), t
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