Custodian liability triggers regulatory action for specified defaults, with enforcement under the intermediaries' procedural framework. Regulation 26 sets out circumstances that render a custodian liable to action under the intermediaries' procedural regime, listing defaults such as contravention of law or regulations; failure to furnish required information or periodic returns; furnishing materially false information; non cooperation with enquiries or inspections; failure to update systems as recommended; inadequate complaint resolution; breaches of the Code of Conduct; and non payment of annual fees, with enforcement to proceed under the referenced Chapter of the intermediaries' regulations.