Depositary's obligations re safekeeping of assets - AIFMD Provision: Difference between revisions

Depositary's obligations re safekeeping of assets - AIFMD Provision (view source)

256 bytes removed , 9 May 2016

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 *potential conflicts of interest are properly identified, managed and disclosed to the investors of the AIF.
 {{aifmdprov|Depositaries}} can delegate custody tasks to one or more prime brokers provided that they meet certain conditions.
-Where a prime broker has been appointed as sub-custodian, it must provide to the depositary of the AIF, no later than the close of the next business day to which it relates, a statement in a durable medium which contains the following information:
 ====Discharge of {{aifmdprov|depositary}}'s strict liability====
-Upon delegation the {{aifmdprov|depositary}} remains strictly liable for any loss caused by the sub-custodian. The depositary may discharge its of liability if it can prove that:
+Upon delegation the {{aifmdprov|depositary}} remains strictly liable for loss caused by the sub-custodian. The depositary may discharge its liability if it can prove that:
 *The delegation complies with the {{tag|AIFMD}};
 *The {{aifmdprov|sub-custodian}} has expressly accepted the {{aifmdprov|depositary}}'s liability so that the {{aifmdprov|AIF}} may claim directly against the sub-custodian for the loss of financial instruments or for the depositary to make such a claim on their behalf; and