Section 18Part 3 — Operating Conditions for Private FundsAmended
Cash monitoring
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Amended by LG49/S6
A private fund shall appoint one of the following persons to perform the cash monitoring duties set out in subsection
—
an administrator, custodian or another independent th ird party; or
the manager or operator , or a person who has a control relationship with the manager of the private fund, provided that —
the cash monitoring function is independent from the portfolio management function; or
potential conflicts of interest are properly identified , managed, monitored and disclosed to the investors of the private fund . 7 ( 2 ) The person appointed under subsection (1) shall — ( a ) monitor the cash flows of the private fund; ( b ) ensure that all cash of the private fund has been booked in cash accounts opened in the name , or for the account, of the private fund; and
ensure that all payments made by investors to the private fund in respect of investment interests have been received.
Where the cash monitoring duties described in subsection (2) are not performed by an administrator, a custodian or another independent third party in accordance with subsection (1)(a), the Authority may require the private fund to have its cash monitoring verified by an independent third party.