EXHIBIT (h)(iv)
CUSTOMER IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (this "AMENDMENT")
amends, as of the 1st day of October, 2003 (the "EFFECTIVE DATE"), the Transfer
Agent Service Agreement, dated as of December, 2002, between Undiscovered
Managers Funds (the "COMPANY" or the "FUND") and PFPC Inc. ("PFPC") (the
"AGREEMENT").
For valuable consideration, the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Company and PFPC hereby agree as follows:
SECTION 1 (ADDITION OF CIP SERVICES SECTION TO THE AGREEMENT). Subject
to the approval of the Board of Trustees of the Fund, as of the Effective Date,
the Agreement shall be amended by the addition of the following as the new final
section of the agreement:
CIP SERVICES. To help the Fund comply with its Customer
Identification Program (as in effect from time to time, the
"Customer Identification Program"), which the Fund is required to
have under regulations issued under Section 326 of the USA
PATRIOT Act, PFPC will do the following:
(a) Implement procedures under which new accounts in the Fund
are not established unless PFPC has obtained the name, date
of birth (for natural persons only), address (for an
individual, a residential or business street address or, if
none, an Army Post Office or Fleet Post Office box number or
the residential or business street address of next of kin or
of another contact individual; for a person other than an
individual (e.g., corporation, partnership or trust), a
principal place of business, local office or other physical
location) and identification number (for a U.S. person, a
taxpayer identification number; for a non-U.S. person, one
or more of the following: a taxpayer identification number;
passport number and country of issuance; alien
identification card number; or number and country of
issuance of any other government-issued document evidencing
nationality or residence and bearing a photograph or similar
safeguard) (collectively, the "DATA ELEMENTS") for each
corresponding CUSTOMER (as defined in 31 CFR 103.131).
(b) Use collected Data Elements to attempt to reasonably verify
the identity of each new Customer promptly before or after
each corresponding new account is opened. Methods may
consist of non-documentary methods (for which PFPC may use
unaffiliated information vendors to assist with such
verifications) and documentary methods (as permitted by 31
CFR 103.131), each, to the extent consistent with the
Customer Identification Program. Such methods may include
procedures under which PFPC personnel perform enhanced due
diligence to verify the identities of Customers the
identities of whom were not successfully verified through
the first-level (which will typically be reliance on results
obtained from an information vendor) verification
process(es).
(c) Record the Data Elements and maintain records relating to
verification of new Customers consistent with 31 CFR
103.131(b)(3).
(d) Perform all other tasks that are permitted to be performed
by a "CIP delegate" under the Customer Identification
Program, including, without limitation, taking appropriate
steps within a reasonable period of time after an account is
opened (or earlier if required by law) to determine whether
the applicable Customer appears on any list of known or
suspected terrorists or terrorist organizations issued by
any federal government agency and designated as such by the
Department of Treasury in consultation with the federal
functional regulators (to the extent such "list-matching" is
required by applicable law or regulation) all such actions
to be performed in a manner consistent with the Customer
Identification Program or as otherwise directed by the Fund
in Written Instructions (as defined in the Agreement).
(e) Regularly report to the Fund about measures taken under
(a)-(d) above.
Notwithstanding anything to the contrary in this Amendment, and
without expanding the scope of the express language above, PFPC
need not collect the Data Elements for (or verify) prospective
customers (or accounts) beyond the requirements of relevant
regulation (for example, PFPC will not verify customers opening
accounts through NSCC) and PFPC need not perform any task that
need not be performed for the Fund to be in compliance with all
relevant regulations, in each case, unless otherwise agreed by
PFPC and the Fund from time to time.
PFPC hereby represents that (i) it has adopted and implemented an
anti-money laundering program ("AML program") consistent with 31
U.S.C. 5318(h) and regulations issued thereunder, as though PFPC
were a mutual fund, and (ii) it is regulated by the Securities
and Exchange Commission. In addition, PFPC agrees to certify
annually to the Fund that it has implemented its AML program, and
that it (or its agent) will perform the specific requirements of
the Customer Identification Program that PFPC has herein agreed
to perform.
The fees of PFPC for rendering these CIP Services are set forth
in a separate fee schedule which is attached hereto as Exhibit A.
SECTION 2 (GENERAL PROVISIONS). This Amendment contains the entire
understanding between the parties with respect to the services contemplated
hereby. Except as expressly set forth herein, the Agreement shall remain
unaffected hereby.
SECTION 3 (MISCELLANEOUS). A copy of the Agreement and Declaration of
Trust establishing the Fund is on file with the Secretary of The Commonwealth of
Massachusetts, and notice is hereby given that this Amendment is executed on
behalf of the Fund by officers of the Fund as officers and not individually and
that the obligations of or arising out of this Amendment are not binding upon
any of the trustees, officers or shareholders individually but are binding only
upon the assets and property belonging to the Fund.
PFPC will be bound by changes in the Customer Identification Program
only if it has agreed to such changes. In the event PFPC refuses to agree to
such changes within seven days of receiving a copy of the revised Customer
Identification Program, the Fund may immediately terminate this Amendment.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
UNDISCOVERED MANAGERS FUNDS
By:
-------------------------------------------
Name: Xxxx X. Xxxxxx
Title: President
PFPC INC.
By:
-------------------------------------------
Name:
Title:
