What is a depositary under Aifmd?
What is a depositary under Aifmd?
Under AIFMD, the depositary may delegate its safekeeping functions provided that the functions are not delegated to circumvent AIFMD, the depositary has an objective reason for the delegation, and the depositary exercises all due skill, care and diligence in the selection, appointment and ongoing monitoring of the sub- …
What is a depositary Lite?
What is depositary-lite? Following the introduction of the AIFMD, UK and other EU hedge fund managers that wish to market their non-EU, offshore hedge funds to EU investors through private placement will need to comply with the so-called depositary-lite regime.
What does Aifmd stand for?
Alternative Investment Fund Managers Directive
Alternative Investment Fund Managers Directive (AIFMD)
What is a depositary of a fund?
A depositary is an independent third party that is responsible for the safekeeping of assets of the AIF, performing the cash flow monitoring and the oversight duties of the AIF. A depositary can be either a bank (DepoBank) or a professional depositary.
Who can act as a depositary?
In order to act as depositary under AIFMD, the relevant entity must be (i) a credit institution; (ii) an investment firm which complies with certain capital adequacy rules and that is authorised to safe keep assets; (iii) a company which is either wholly owned by a credit institution or is wholly owned by an …
What is the difference between custodian and depositary?
Compared with depositaries, custodians focus on the operational side of the safekeeping and settlement of securities while depositaries focus on the accurate monitoring of the assets.
Who falls under AIFMD?
The Alternative Investment Fund Managers Directive (AIFMD) is a regulatory framework that applies to EU-registered hedge funds, private equity funds, and real estate investment funds.
When was the AIFMD applicable from?
2013
The Alternative Investment Fund Managers Directive (the “AIFMD”) came into force in 2011 and was required to be implemented by the European Economic Area (the “EEA”) member states into their national laws by 2013.
Is depositary the same as trustee?
is that depositary is one who receives a deposit in trust while trustee is a person to whom property is legally committed in trust, to be applied either for the benefit of specified individuals, or for public uses; one who is intrusted with property for the benefit of another; also, a person in whose hands the effects …
What is difference between custodian and depositary services?
Difference Between Custodian And Depository in India Custodian refers to the person in charge of the property, while Depository refers to the location where the funds are held. So your shares or holdings will be held by the custodian, but they will be legally held in a Depository’s safe-keeping account.
Is CDSL a custodian?
In a nutshell, custody is a depository function, and each depository is a custodian; however, a custodian is not a depository….Difference Between Custodian And Depository in India.
| Depository | Custodian |
|---|---|
| Examples: CDSL, NSDL | Examples: HDFC Bank, ICICI Bank, SBI |
Does an AIFM need to appoint an independent depositary?
An AIFM that is fully authorised under AIFMD is required to appoint a single independent depositary in respect of each AIF it manages.
Do we need a single depositary for non-EEA AIFS?
Given a significant number of prime brokers to non-EEA AIFs managed by UK-based AIFMs are UK entities, it follows that, under the draft rules, a single depositary would be required. This requirement goes beyond the AIFMD and represents a ‘gold plating’ of the directive.
Can a closed-ended fund carry out depositary functions under AIFMD?
However, for closed-ended funds which do not generally invest in assets that must be held in custody ( see here for further details) AIFMD permits Member States to cater for a lighter regime whereby another entity which carries out depositary services as part of its professional activities may carry out the depositary functions.
What is the ‘depositary Lite’ model?
Strict liability does not apply. This has therefore been dubbedthe ‘depositary lite’ model. It is surprising that, given its much greater size relative to the EEA AIF market, these reduced depositary requirements which apply to non-EEA AIFs have received far less attention.
