81,845
edits
Depositary lite - AIFMD Provision: Difference between revisions
Depositary lite - AIFMD Provision (view source)
Revision as of 17:14, 23 September 2021
, 23 September 2021no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{aifmdanat|36| | {{aifmdanat|36| | ||
[[File:Texas book depository.png|450px|frameless|center]] | [[File:Texas book depository.png|450px|frameless|center]] | ||
}} | }}For EU AIFMs that market non-EU AIFs to professional investors in the EU, AIFMD does away with the need for the fund to have a full-blown [[Depositary - AIFMD Provision|depositary]], but you do need to monitor cash flows, look after [[custody]] assets and manage [[subscription|subscriptions]] and [[redemption|redemptions]]. | ||
For EU AIFMs that market non-EU AIFs to professional investors in the EU, AIFMD does away with the need for the fund to have a full-blown [[Depositary - AIFMD Provision|depositary]], but you do need to monitor cash flows, look after [[custody]] assets and manage [[subscription|subscriptions]] and [[redemption|redemptions]]. | |||
These three functions don’t have to be carried out by the same dude. An administrator might handle [[subscription]]s and [[redemption]]s and cashflow monitoring, and a [[prime broker]] might handle the [[custody]] function. When a prime broker does this, we call this a “depositary lite”, or “depo-lite” function. Unlike a full-blown {{aifmdprov|depositary}}, a depo-lite does ''not'' have strict liability for loss of a {{aifmdprov|Non-EU AIF}}’s assets, but it still has to give some commitments, and — it being the labyrinthine European Union and everything — these are described in a convoluted way, involving | These three functions don’t have to be carried out by the same dude. An administrator might handle [[subscription]]s and [[redemption]]s and cashflow monitoring, and a [[prime broker]] might handle the [[custody]] function. When a prime broker does this, we call this a “depositary lite”, or “depo-lite” function. Unlike a full-blown {{aifmdprov|depositary}}, a depo-lite does ''not'' have strict liability for loss of a {{aifmdprov|Non-EU AIF}}’s assets, but it still has to give some commitments, and — it being the labyrinthine European Union and everything — these are described in a convoluted way, involving | ||
| Line 49: | Line 48: | ||
WE SHALL SEE. | WE SHALL SEE. | ||
By the way, the picture is of the Texas Book Depository, where there is a ''light'' on. Geddit?? | |||