Meaning of “custodial institution”
5.—(1)  In these Regulations, “custodial institution” means —
(a)the holder of a capital markets services licence under the Securities and Futures Act for carrying out the regulated activity of providing custodial services for specified products;
(b)a person (other than an individual) that is exempt under section 99(1)(a) to (d), (g) and (h) of the Securities and Futures Act read with paragraph 6 of the Second Schedule to the Securities and Futures (Licensing and Conduct of Business) Regulations (Cap. 289, Rg 10), from the requirement to hold a capital markets services licence to carry out the regulated activity of providing custodial services for specified products;
(c)a licensed trust company under the Trust Companies Act (Cap. 336); or
(d)any other person (other than an individual) that holds, as a substantial portion of the person’s business (within the meaning of paragraph 1(h) of Article 1 of the Agreement), financial assets for the account of others.
(2)  A person is not a custodial institution for the purposes of paragraph (1) if it is an NFFE that meets the criteria in paragraph B(4)(e) of Section VI of Annex I to the Agreement.