Avoiding conflicts of interest - AIFMD Provision: Difference between revisions

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{{aifmdquote|{{AIFMD 21.4}}|21.4}}
{{aifmdquote|{{AIFMD 21.4}}|21.4}}


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Revision as of 09:30, 7 July 2015

===Paragraph 21.4, AIFMD=== AIFMD, 21.4
21(4). In order to avoid conflicts of interest between the depositary, the AIFM and/or the AIF and/or its investors:

(a) an AIFM shall not act as depositary;
(b) a prime broker acting as counterparty to an AIF shall not act as depositary for that AIF, unless it has functionally and hierarchically separated the performance of its depositary functions from its tasks as prime broker and the potential conflicts of interest are properly identified, managed, monitored and disclosed to the investors of the AIF. Delegation by the depositary to such prime broker of its custody tasks in accordance with paragraph 21.11 is allowed if the relevant conditions are met.

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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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