Objective reason - UCITS V Provision: Difference between revisions

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{{fullanat|aifmd|DR76|}}As at the beginning of February 2015, there was not much guidance on what an "{{ucitsVprov|objective reason}}" is for the purposes of the criteria set out in {{tag|UCITS V}} Article {{ucitsprov|22a}} for the delegation by a {{ucitsprov|depositary}} of the safekeeping function to a third party.
{{fullanat|aifmd|DR76|}}As at the beginning of February 2015, there was not much guidance on what an "{{ucits5prov|objective reason}}" is for the purposes of the criteria set out in {{tag|UCITS V}} Article {{ucits5prov|22a}} for the delegation by a {{ucits5prov|depositary}} of the safekeeping function to a third party.


But look at the equivalent {{aifmdprov|objective reason}} provision in the implementing regulations for {{tag|AIFMD}}.
But look at the equivalent {{aifmdprov|objective reason}} provision in the implementing regulations for {{tag|AIFMD}}.

Revision as of 16:43, 18 April 2018

AIFMD Anatomy™

AIFMD, DR76

Article DR 76 of the AIFMD Delegated Regulation

Objective reasons for delegation

DR 76(1) The AIFM shall provide the competent authorities with a detailed description, explanation and evidence of the objective reasons for delegation. When assessing whether the entire delegation structure is based on objective reasons within the meaning of Article 20(1)(a) of Directive 2011/61/EU (EUR Lex) the following criteria shall be considered:

(a) optimising of business functions and processes;
(b) cost saving;
(c) expertise of the delegate in administration or in specific markets or investments;
(d) access of the delegate to global trading capabilities.

DR 76(2) Upon request by the competent authorities, an AIFM shall provide further explanations and provide documents proving that the entire delegation structure is based on objective reasons.

(view template)

Directive 2011/61/EU (EUR Lex) | Implementing regulation 231/2013 (EUR Lex)
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directive - 21 (depositary) | 21(4) (conflict management) | 21(8) (custody function) | 21(11) (custody delegation) | 21(12) (liability for loss of assets) | 21(13) (discharge of liability on delegation) | 21(14) (discharge of liability for Non-EU subcustodians) | 36 (depo-lite) | 36(1)
implementing regulation DR20 (Due diligence when appointing counterparties and prime brokers) | DR76 (objective reason) | DR89 (Safekeeping duties with regard to assets held in custody) | DR91 (reporting obligations for prime brokers) | DR98 (due diligence) | DR99 (segregation obligation) | DR100 (Loss of custody asset) |
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As at the beginning of February 2015, there was not much guidance on what an "objective reason" is for the purposes of the criteria set out in UCITS V Article 22a for the delegation by a depositary of the safekeeping function to a third party.

But look at the equivalent objective reason provision in the implementing regulations for AIFMD.

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