When most people think of depositaries in the context of AIFMD they think about the strict liability these firms will take on for the loss of financial assets. But this only applies to EU alternative investment fund managers (AIFM) managing EU alternative investment funds. In this article Bill Prew discusses the reduced depositary requirements which apply to the much larger number of EU AIFMs, managing non EU AIFs that are marketed to EU investors, and in particular why the so called ‘depositary-lite’ model might not be as simple as it sounds.
