Template:Ucits delegaton versus aifmd delegation

Custody delegation under UCITS and AIFMD looks kind of similar doesn’t it?

Yes, it does. The textual differences betwixt UCITS (Art 22a) and AIFMD (Art 21(11)) are largely formal, or mutatis mutandis in style. The substantive differences are that a UCITS depositary:

• cannot reuse the UCITS’ assets at all, whereas an AIFMD depositary can, with prior notification and consent;
• must take all necessary steps to ensure UCITS’ assets aren’t caught up in the bankruptcy estate of an insolvent delegate custodian — there isn’t an equivalent provision under AIFMD, though perhaps you might imply it;
• must notify UCITS investors of the risks of delegation where a non-EEA jurisdiction requires use of a local custodian and no local entities satisfy the delegation requirements and not just the fact of, and circumstances justifying, it.