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Depositary lite - AIFMD Provision: Difference between revisions
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{{aifmdanat|36}} | {{aifmdanat|36}}===The Brexit bugger’s muddle=== | ||
If you wanted an example of the bugger’s muddle that [[Brexit]] created, look no further than the depositary lite regime under AIFMD. Already, beyond a shade of doubt, a bugger’s muddle; now some kind of poan dimensional bugger’s muddle. | |||
So the UK has left the EU, but has adopted its directives into UK law, while EU regulations were already part of municipal UK law, were the law anyway, so didn’t need to be specifically adopted. AIFMD, like many financial services regulations, is composed of a directive, which is supported by regulatory technical standards imposed by regulation. I’m sure there was a good reason for this, but I don’t have the energy to find out what it was. | |||
Now: the depo lite regime is designed for ''innie'' fund managers — those resident ''inside'' the EU — marketing ''outie'' funds — funds incorporated ''outside'' the EU — to ''innie'' investors, resident in the EU. | |||
UK, of course, used to be an innie, and the idea is, as nearly as possible, for all the damage Brexit has done, we remain an innie afterwards, with harmonised alternative fund management regulation. But there’s a little gap: a UK domiciled fund is an ''innie'' for UK AIFMD, but an ''outie'' for EU AIFMD. But conversely, an fund domiciled in the EU is an ''innie'' for the EU, but ''also an innie'' for the UK, because a “third country” AIF means one resident outside the EEA. | |||
'''Cut-down depositary function''': Non-{{tag|EU}} [[AIF]]s marketed by an {{tag|EU}} [[AIFM]] to EU investors through [[private placement]] — call them {{aifmdprov|Non-EU AIF}}s — have to comply with everything else in {{tag|AIFMD}} ''but they don’t have to have a {{aifmdprov|depositary}}''. | '''Cut-down depositary function''': Non-{{tag|EU}} [[AIF]]s marketed by an {{tag|EU}} [[AIFM]] to EU investors through [[private placement]] — call them {{aifmdprov|Non-EU AIF}}s — have to comply with everything else in {{tag|AIFMD}} ''but they don’t have to have a {{aifmdprov|depositary}}''. | ||