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Depositary - UCITS V Provision: Difference between revisions
Depositary - UCITS V Provision (view source)
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The depositary appointed by a {{UCITS}} fund is the regulated entity who keeps an eye on things and makes sure the fund is being run properly. Where it has one, a {{tag|prime broker}} will generally not qualify as a depositary though, like under {{AIFMD}}, the appointed depositary may delegate some of its functions (especially as regards [[custody]]) to a {{prime broker}}. | |||
See UCITS Article {{ucitsprov|22(3) notes the depositary's general duties, including to: | |||
{{ucitssnap|22(3)}} | |||
Quoth the UCITS Directive {{eudirective|2014|91|EU}}: | Quoth the UCITS Directive {{eudirective|2014|91|EU}}: | ||
''(12) A UCITS should appoint a single {{ucitsprov|depositary}} having general oversight over the assets of the {{ucitsprov|UCITS}}. Requiring that there be a single depositary should ensure that the depositary has an overview of all the assets of the UCITS and both fund managers and investors have a single point of reference in the event that problems occur in relation to the safekeeping of assets or the performance of oversight functions. The safekeeping of assets includes holding assets in custody or, where assets are of such a nature that they cannot be held in custody, verification of the ownership of those assets as well as record-keeping for those assets.'' <br> | {{box|''(12) A UCITS should appoint a single {{ucitsprov|depositary}} having general oversight over the assets of the {{ucitsprov|UCITS}}. Requiring that there be a single depositary should ensure that the depositary has an overview of all the assets of the UCITS and both fund managers and investors have a single point of reference in the event that problems occur in relation to the safekeeping of assets or the performance of oversight functions. The safekeeping of assets includes holding assets in custody or, where assets are of such a nature that they cannot be held in custody, verification of the ownership of those assets as well as record-keeping for those assets.'' <br> | ||
''(13) In performing its tasks, a depositary should act honestly, fairly, professionally, independently and in the interest of the UCITS and of the investors of the UCITS. | ''(13) In performing its tasks, a depositary should act honestly, fairly, professionally, independently and in the interest of the UCITS and of the investors of the UCITS. | ||
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''(20) It is necessary to lay down the conditions for the {{ucitsprov|delegation}} of the depositary’s safekeeping duties to a third party. Delegation and sub-delegation should be {{ucitsprov|objectively}} justified and subject to strict requirements in relation to the suitability of the third party entrusted with the delegated function, and in relation to the due skill, care and diligence that the depositary should employ to select, appoint and review that third party. For the purpose of achieving uniform market conditions and an equally high level of investor protection, such conditions should be aligned with those applicable under Directive {{eudirective|2011|61|EU}}. Provisions should be adopted to ensure that third parties to which safekeeping functions have been delegated have the necessary means to perform their duties and that they segregate the assets of the UCITS.'' | ''(20) It is necessary to lay down the conditions for the {{ucitsprov|delegation}} of the depositary’s safekeeping duties to a third party. Delegation and sub-delegation should be {{ucitsprov|objectively}} justified and subject to strict requirements in relation to the suitability of the third party entrusted with the delegated function, and in relation to the due skill, care and diligence that the depositary should employ to select, appoint and review that third party. For the purpose of achieving uniform market conditions and an equally high level of investor protection, such conditions should be aligned with those applicable under Directive {{eudirective|2011|61|EU}}. Provisions should be adopted to ensure that third parties to which safekeeping functions have been delegated have the necessary means to perform their duties and that they segregate the assets of the UCITS.'' | ||
The important parts relating to delegation are set out in | }} | ||
===See also=== | |||
*{{aifmdprov|Depositary}} in the context of {{tag|AIFMD}}. | |||
*The important parts relating to delegation are set out in Article {{ucitsprov|22a}}. | |||
===Comparison of UCITS and AIFMD Depositary Regimes=== | ===Comparison of UCITS and AIFMD Depositary Regimes=== | ||