Template:AIFMD 21(12): Difference between revisions
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{{aifmdprov|21(12)}}. The {{aifmdprov|depositary}} shall be liable to the {{aifmdprov|AIF}} or to the investors of the {{aifmdprov|AIF}}, for the loss by the {{aifmdprov|depositary}} or a third party to whom the custody of {{aifmdprov|financial instruments}} held in custody in accordance with point (a) of paragraph 8 has been delegated. <br> | {{aifmdprov|21(12)}}. The {{aifmdprov|depositary}} shall be liable to the {{aifmdprov|AIF}} or to the investors of the {{aifmdprov|AIF}}, for the loss by the {{aifmdprov|depositary}} or a third party to whom the custody of {{aifmdprov|financial instruments}} held in custody in accordance with point (a) of paragraph [[21(8)(a) - AIFMD Provision|8]] has been delegated. <br> | ||
In the case of such a loss of a {{aifmdprov|financial instrument}} held in custody, the {{aifmdprov|depositary}} shall return a {{aifmdprov|financial instrument}} of identical type or the corresponding amount to the {{aifmdprov|AIF}} or the {{aifmdprov|AIFM}} acting on behalf of the {{aifmdprov|AIF}} without undue delay. The {{aifmdprov|depositary}} shall not be liable if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary. <br> | In the case of such a loss of a {{aifmdprov|financial instrument}} held in custody, the {{aifmdprov|depositary}} shall return a {{aifmdprov|financial instrument}} of identical type or the corresponding amount to the {{aifmdprov|AIF}} or the {{aifmdprov|AIFM}} acting on behalf of the {{aifmdprov|AIF}} without undue delay. The {{aifmdprov|depositary}} shall not be liable if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary. <br> | ||
The {{aifmdprov|depositary}} shall also be liable to the {{aifmdprov|AIF}}, or to the investors of the {{aifmdprov|AIF}}, for all other losses suffered by them as a result of the {{aifmdprov|depositary}}’s [[negligent]] or intentional failure to properly fulfil its obligations pursuant to this Directive. <br> | The {{aifmdprov|depositary}} shall also be liable to the {{aifmdprov|AIF}}, or to the investors of the {{aifmdprov|AIF}}, for all other losses suffered by them as a result of the {{aifmdprov|depositary}}’s [[negligent]] or intentional failure to properly fulfil its obligations pursuant to this Directive. <br> | ||
Latest revision as of 15:55, 8 April 2019
21(12). The depositary shall be liable to the AIF or to the investors of the AIF, for the loss by the depositary or a third party to whom the custody of financial instruments held in custody in accordance with point (a) of paragraph 8 has been delegated.
In the case of such a loss of a financial instrument held in custody, the depositary shall return a financial instrument of identical type or the corresponding amount to the AIF or the AIFM acting on behalf of the AIF without undue delay. The depositary shall not be liable if it can prove that the loss has arisen as a result of an external event beyond its reasonable control, the consequences of which would have been unavoidable despite all reasonable efforts to the contrary.
The depositary shall also be liable to the AIF, or to the investors of the AIF, for all other losses suffered by them as a result of the depositary’s negligent or intentional failure to properly fulfil its obligations pursuant to this Directive.