The issue of liability is most relevant where custody is delegated. According to Article 22(2), the depositary's liability "shall not be affected by the fact that it has entrusted to a third party all or some of the assets in its safe-keeping". The UCITS Directive contains no further provisions governing liability for the loss of a financial instrument where custody has been delegated to a third party. This issue is left to the general principle expressed in Article 22(2), which gives a wide margin of interpretation to Member States. For instance, some Member States only impose an obligation to monitor.
