Reporting obligations for prime brokers - AIFMD Provision: Difference between revisions
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{{aifmdanat|DR91|}} | {{aifmdanat|DR91|}} | ||
Relevant where a {{aifmdprov|depositary}} delegates the custody/safekeeping function under Art {{aifmdprov|21(8)(a)}} to a | Relevant where a {{aifmdprov|depositary}} delegates the custody/safekeeping function under Art {{aifmdprov|21(8)(a)}} to a {{aifmdprov|prime broker}}. | ||
''Not'' relevant in a [[depo-lite]] situation (which applies to certain {{aifmdprov|Non-EU AIF}}s, where there is not a {{aifmdprov|depositary}} in the first place, and delegation is not happening. | ''Not'' relevant in a [[depo-lite]] situation (which applies to certain {{aifmdprov|Non-EU AIF}}s, where there is not a {{aifmdprov|depositary}} in the first place, and delegation is not happening. When you think about it, it ''can’t'' really apply to a depo lite, since by definition there is no {{aifmdprov|depositary}} for the {{aifmdprov|prime broker}} to make any of these reports ''to''. | ||
Sets out the reporting that the [[prime broker]] has to make — it is the {{aifmdprov|AIFM}}’s responsibility to make sure this happens, and yes, it seems to be one of those regulations imposing an obligation on the parties to have a {{t|contract}} to do something, rather than simply mandating it as a matter of compulsory regulation. | Sets out the reporting that the [[prime broker]] has to make — it is the {{aifmdprov|AIFM}}’s responsibility to make sure this happens, and yes, it seems to be one of those regulations imposing an obligation on the parties to have a {{t|contract}} to do something, rather than simply mandating it as a matter of compulsory regulation. |
Revision as of 12:59, 13 November 2019
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Relevant where a depositary delegates the custody/safekeeping function under Art 21(8)(a) to a prime broker.
Not relevant in a depo-lite situation (which applies to certain Non-EU AIFs, where there is not a depositary in the first place, and delegation is not happening. When you think about it, it can’t really apply to a depo lite, since by definition there is no depositary for the prime broker to make any of these reports to.
Sets out the reporting that the prime broker has to make — it is the AIFM’s responsibility to make sure this happens, and yes, it seems to be one of those regulations imposing an obligation on the parties to have a contract to do something, rather than simply mandating it as a matter of compulsory regulation.
There should be a name for regulations like this. Other than just “bone-headed”, of course.
Assiduous lawyers might want this put in your prime brokerage agreement. Seeing as the natural counterparties to this agreement are teh PB, on one hand, and the depositary or AIFM on the other hand (neither of which is likely to be a party to the prime brokerage agreement - usually that is the PB and the AIF itself), try to resist this.