In a UCITS fund, which entity is primarily responsible for safekeeping the fund's assets?

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Prepare for the Qualified Financial Adviser Exam 2 with flashcards and multiple choice questions, complete with hints and explanations. Get exam-ready and increase your confidence with our comprehensive study materials!

Multiple Choice

In a UCITS fund, which entity is primarily responsible for safekeeping the fund's assets?

Explanation:
In UCITS funds, the entity responsible for safekeeping the fund’s assets is the custodian (depositary). This role is to actually hold and protect the fund’s cash and securities, keeping them separate from the manager’s assets and overseeing their custody and transfer. The investment strategy is set by the investment manager, NAV is calculated by the administrator or pricing agent, and marketing is done by the distributor. So the custodian’s duty to safeguard the assets is the defining responsibility that aligns with safekeeping.

In UCITS funds, the entity responsible for safekeeping the fund’s assets is the custodian (depositary). This role is to actually hold and protect the fund’s cash and securities, keeping them separate from the manager’s assets and overseeing their custody and transfer. The investment strategy is set by the investment manager, NAV is calculated by the administrator or pricing agent, and marketing is done by the distributor. So the custodian’s duty to safeguard the assets is the defining responsibility that aligns with safekeeping.

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