Companion Policy to NI 81-102 Investment Funds
Part 8 Custodianship of Portfolio Assets
Section 8.2

Book-Based System

(1) Subsection 6.5(3) of the Instrument provides that a custodian or sub-custodian of an investment fund may arrange for the deposit of portfolio assets of the investment fund with a depository, or clearing agency, that operates a book-based system. Such depositories or clearing agencies include The Canadian Depository For Securities Limited, the Depository Trust Company or any other domestic or foreign depository or clearing agency that is incorporated or organized under the laws of a country or a political subdivision of a country and operates a book- based system in that country or political subdivision or operates a transnational book-based system.

(2) A depository or clearing agency that operates a book-based system used by an investment fund is not considered to be a custodian or sub-custodian of the investment fund.