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Sub-custodian: Difference between revisions
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A topic of some recent interest in light of {{tag|AIFMD}} and {{tag|UCITS V}} legislation. Under both regimes a single [[depositary]] must be appointed having strict liability for the safe keeping of assets. | A topic of some recent interest in light of {{tag|AIFMD}} and {{tag|UCITS V}} legislation. Under both regimes a single [[depositary]] must be appointed having strict liability for the safe keeping of assets. | ||
Note though that being delegated a custody function is an altogether different thing to being a [[subcustodian]]. | |||
A [[depositary]] who delegates its custody function won't hold the assets at all - it will pass that responsibility to the [[prime broker]], who will record the end client's interests in the custody assets directly in its books and records. | |||
It may in turn appoint a [[subcustodian]] who will hold all the [[prime broker]]'s client assets in a single [[omnibus]] account, in the [[prime broker]]'s name but marked as "client assets" and therefore unavailable for the prime broker's creditors. | |||
===See also=== | ===See also=== | ||
*[[Custodian]] | *[[Custodian]] | ||
*[[Prime broker]] | |||
*{{aifmdprov|Depositary}} ({{tag|AIFMD}}) | *{{aifmdprov|Depositary}} ({{tag|AIFMD}}) | ||
*{{ucitsprov|Depositary}} ({{tag|UCITS V}}) | *{{ucitsprov|Depositary}} ({{tag|UCITS V}}) | ||