Reporting obligations for prime brokers - AIFMD Provision: Difference between revisions

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 {{aifmdanat|DR91|}}
-Relevant where a {{aifmdprov|depositary}} delegates the custody/safekeeping function under Art {{aifmdprov|21(8)(a)}} to a {{aifmdprov|prime broker}}.
+===Applies to full {{aifmdprov|depositary}} [[delegation]]s of the safe-keeping function...===
+Relevant where a {{aifmdprov|depositary}} delegates the custody/safekeeping function under Art {{aifmdprov|21(8)(a)}} to a {{aifmdprov|prime broker}}. Sets out the reporting that {{aifmdprov|prime broker}} acting as a delegated custodian has to make to the {{aifmdprov|depositary}}. It is the {{aifmdprov|AIFM}}’s responsibility to make sure this happens, and yes, it seems to be one of those regulations imposing an obligation on the parties to have a {{t|contract}} to do something, rather than simply mandating it as a matter of compulsory regulation. There should be a name for regulations like this. Other than just “bone-headed”, of course.
+===...does ''not'' apply to [[depo lite]]s===
 ''Not'' relevant in a [[depo-lite]] situation (which applies to certain {{aifmdprov|Non-EU AIF}}s, where there is not a {{aifmdprov|depositary}} in the first place, and delegation is not happening. When you think about it, it ''can’t'' really apply to a depo lite, since by definition there is no {{aifmdprov|depositary}} for the {{aifmdprov|prime broker}} to make any of these reports ''to''.
-Sets out the reporting that the [[prime broker]] has to make — it is the {{aifmdprov|AIFM}}’s responsibility to make sure this happens, and yes, it seems to be one of those regulations imposing an obligation on the parties to have a {{t|contract}} to do something, rather than simply mandating it as a matter of compulsory regulation.
+===Don’t put this in the [[prime brokerage agreement]]===
+[[Mediocre lawyer|Assiduous lawyers]] might want this put in your [[prime brokerage agreement]]. Seeing as the natural counterparties to this agreement are the PB, on one hand, and the {{aifmdprov|depositary}} or {{aifmdprov|AIFM}} on the other hand (neither of which is likely to be a party to the [[prime brokerage agreement]] - usually that is the [[PB]] and the {{aifmdprov|AIF}} itself), try to resist this.
-There should be a name for regulations like this. Other than just “bone-headed”, of course.
-Assiduous lawyers might want this put in your prime brokerage agreement. Seeing as the natural counterparties to this agreement are teh PB, on one hand, and the {{aifmdprov|depositary}} or {{aifmdprov|AIFM}} on the other hand (neither of which is likely to be a party to the [[prime brokerage agreement]] - usually that is the [[PB]] and the {{aifmdprov|AIF}} itself), try to resist this.
 {{sa}}