Template:Nutshell AIFMD 21(11)(d)

21(11)(d) the depositary ensures that the third party complies with the following when performing its delegated tasks:

(i) it has adequate structures and expertise proportionate to the nature and complexity of the assets of the AIF entrusted to it;

(ii) for custody tasks set out in paragraph 21(8)(a), it is subject to

• effective prudential regulation, including minimum capital requirements, and supervision in its jurisdiction and
• an external periodic audit to ensure that the financial instruments are in its possession;

(iii) it segregates the depositary’s clients’ assets from its own and the depositary’s own assets so that they can be clearly identified as belonging to clients of a particular depositary;

(iv) it does not use the AIF’s assets without first getting the AIF’s consent and telling the depositary; and

(v) it generally complies with paragraphs 21(8) and 21(10) when carrying out its obligations.