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Depositary's obligations re safekeeping of assets - AIFMD Provision: Difference between revisions
Depositary's obligations re safekeeping of assets - AIFMD Provision (view source)
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A fully authorised {{aifmdprov|AIFM}} must appoint a single {{aifmdprov|depositary}} for each {{aifmdprov|AIF}} it manages. See Article {{aifmdprov|21}}. | A fully authorised {{aifmdprov|AIFM}} must appoint a single {{aifmdprov|depositary}} for each {{aifmdprov|AIF}} it manages. See Article {{aifmdprov|21}}. | ||
===Functions=== | |||
The depositary may not be affiliated with the {{aifmdprov|AIFM}} and must be domiciled in the same jurisdiction. Its main roles are | |||
*monitoring cashflows; | |||
*providing safe-keeping of custodiable assets (i.e., being a {{aifmdprov|custodian}}); | |||
*verifying the AIF's ownership interest in non-custodiable assets; | |||
*overseeing issue, and redemption of fund units; | |||
*overseeing calculation and publication of {{aifmdprov|NAV}}s; | |||
*ensuring the AIF’s receives consideration for the sale of its assets within the usual time limits; and | |||
*maintaining accurate records of the above. | |||
===Delegation=== | |||
You will see the depositary role is not really suitable for a prime broker. the depositary may delegate some of these functions however: | |||
A prime broker may act as: | |||
*{{aifmdprov|custodian}}, but will have certain conditions to that appointment; | |||
*"{{aifmdprov|Depositary lite}}" to certain non-EU domiciled {{aifmdprov|AIF}}s | |||
{{aifmdsnap|21(8)}} | {{aifmdsnap|21(8)}} | ||
{{nuts|AIFMD|21(8)}} | {{nuts|AIFMD|21(8)}} | ||