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21(13) - AIFMD Provision: Difference between revisions
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{{aifmdanat|21(13)}} | {{aifmdanat|21(13)}} | ||
The great question of who should be liable for third party {{aifmdprov|sub-custodian}}s. The depositary will say, well, by dint of 21(12), I am stuck with more or less absolute liability for loss of the | The great question of who should be liable for third party {{aifmdprov|sub-custodian}}s. The {{aifmdprov|depositary}} will say, well, by dint of {{aifmdprov|21(12)}}, I am stuck with more or less absolute liability for loss of the {{aifmdprov|AIF}}’s assets wherever they may be, unless I can get my delegate to accept liability for them. | ||
The delegate says, “okay, I can probably live with that for my own affiliates, but what about unaffiliated subcustodians in weirdo jurisdictions? All kinds of crazy stuff can go on there.” | |||
The depositary says, well, do your freaking job would you? You are meant to be a professional custodian. You are meant to be able to control these things. It is your subcustody network. Put some controls in place. At least you hgave the contractual privity to exercise controls. I don't even have that. | |||
Then | |||
{{sa}} | {{sa}} | ||