Section 109

(1)

An operator or trustee must carry out due diligence on a proposed person who is to provide the services of collective investment scheme administration or custody to ensure that person's eligibility prior to effecting any such delegation of investment services or activities and such delegation must be in the form of a written agreement.

Any such delegation under sub-regulation (1) does not relieve the operator or trustee from accountability for the proper conduct of a delegated activity.