The future for depositaries: Brexit, conflicts of interest and the drive for added value

The role of the depositary was introduced under the AIFMD to address failings of the alternative fund management industry. AIFMD sought to help restore confidence among investors and regulators in the alternatives sector. The depositary, alongside the fund auditor and directors, is now viewed as an important part of the governance structure that provides independent assurance to investors, boards, managers […]

ESMA opinion on asset segregation and application of depositary delegation rules to CSDs

Following a consultation paper issued on 1 December 2014 and a subsequent Call for Evidence on 15 July 2016, ESMA has now set out its opinion on asset segregation under AIFMD. The focus of the original ESMA consultation was the extent to which assets should be segregated throughout the custody chain for the purposes of investor protection rather than extensive use […]

FCA study highlights further regulatory focus on fund governance

This INDOS Financial article was first published by Global Investor and can also be read here (subscription required). A decade ago, fund governance was seen by some managers as little more than a clerical duty albeit one which did not intrude on their activities or strategic decision-making. Equally many investors rarely spoke of or monitored the actions of those directors, despite […]

The end of the AIFMD depositary derogation and other market developments

The Alternative Investment Fund Managers Directive (AIFMD) is entrenched but evolutions are taking place in its development. Continued focus on the independence of the depositary Increasingly, alternative investment funds (AIFs) are favouring the appointment of independent depositary providers, as managers, institutional investors and fund directors become more circumspect about the potential conflicts of interests occurring in the oversight role if […]

AIFMD 2: where things stand and what its focus should be

The EU’s Alternative Investment Fund Managers Directive (AIFMD) has gone through numerous rewrites and development phases since the acronym first entered the public domain way back in 2009. AIFMD originally included a requirement that it must be reviewed by the European Commission by 22 July 2017. The Commission is now reportedly looking for experts to undertake an evidence-based study, to […]