Prime broker - AIFMD Provision

Where a prime broker has been appointed as sub-custodian, it must provide to the depositary of the AIF, no later than the close of the next business day to which it relates, a statement in a durable medium which contains the following information:

• at the end of each business day, the total value of assets held by the prime broker for the AIF, including:
  • cash loans made to the AIF and accrued interest;
  • securities to be redelivered by the AIF under open short positions entered into on behalf of the AIF;
  • current settlement amounts to be paid by the AIF under any futures contracts;
  • short sale cash proceeds held by the prime broker in respect of short positions entered into on behalf of the AIF;
  • cash margins held by the prime brokerin respect of open futures contracts entered into on behalf of the AIF;
  • mark-to-market close-out exposures of any OTC transaction entered into on behalf of the AIF;
  • total secured obligations of the AIF against the prime broker; and
  • all other assets relating to the AIF.
• the value of other assets (i.e. not financial instruments) as collateral by the prime broker in respect of secured transactions entered into under a prime brokerage agreement;
• the value of the assets where the prime broker has exercised a right of use in respect of the AIF’s assets;
• a list of all the institutions at which the prime broker holds or may hold cash of the AIF in an account opened in the name of the AIF or in the name of the AIFM;
• details of any other matters necessary to ensure that the depositary of the AIF has up-to-date and accurate information about the value of assets the safekeeping of which has been delegated to the prime broker.

See:

• DR91 reporting obligations for prime brokers

AIFMD

This is an article about Alternative Investment Funds Management Directive (2011/61/EU (EUR Lex)) and the AIFMD Implementing Regulation 231/2013 (EUR Lex).

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