Changes to the UCITS directive introduced in 2001 extended the scope of eligible assets for UCITS to new classes of assets. 6 As a result, UCITS managers now invest in a much greater number of countries and in more complex instruments than in 1985. As more investment opportunities arise in different third country jurisdictions, the necessity to appoint sub- custodians in these jurisdictions increases. Despite the enlargement of eligible investment instruments, the UCITS Directive does not define the conditions applicable in case a depositary delegates custody to a sub-custodian. The lack of clarity pertains both to the conditions under.
