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Depositary lite - AIFMD Provision: Difference between revisions
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Depositary lite - AIFMD Provision (view source)
Revision as of 17:01, 17 December 2018
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{{aifmdanat|36}} | {{aifmdanat|36}} | ||
Non-{{tag|EU}} [[AIF]]s marketed by an {{tag|EU}} [[AIFM]] to EU investors through [[private placement]] | '''Cut-down despotary function''': Non-{{tag|EU}} [[AIF]]s marketed by an {{tag|EU}} [[AIFM]] to EU investors through [[private placement]] have to comply with everything else in AIFMD but the depositary requirement is restricted to just cash monitoring, custody and handling subscriptions and redemptions. | ||
=== | '''Liability''': Unlike in a full-blown depositary, under article {{aifmdprov|21}} there is no strict liability for loss of assets for a {{aifmdprov|non-EU AIF}}, and no requirement to appoint a single {{aifmdprov|depositary}} - therefore this regime is referred to as “{{aifmdprov|Depositary-Lite}}” or “{{aifmdprov|Depo-Lite}}”. | ||
===Prime Broker as depositary lite=== | |||
An AIFM can appoint the [[prime broker]] as its custodian for a non-EU AIF, but the PB will not want to assume all liability, so will accept this the role subject to 28(1)(a) ''as it applies to a person carrying out the safe-keeping function under ({{aifmdprov|36(1)(a)}}). | |||
Tedious, isn’t it. | |||