Depositary lite - AIFMD Provision: Difference between revisions

Depositary lite - AIFMD Provision (view source)

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 Tedious, isn’t it.
+===Does a margin-holder who receives collateral under a pledge count as a delegated custodian?===
+It is one thing for a prime broker, who definitely is safe-keeping for its client, to accept responsbilities as a depositary’s delegate (or a depo-lite), but what about a futures clearer or a swap counterparty who receives margin under a pledge? It is hard to see why they would avoid the general drafting under AIFMD, but there are plenty of reasons it doesn’t make any sense. for one thing, a title transfer collateral arrangement, which is economically the same thing, wouldn’t be caught. Practically that may be the answer: just don’t take collateral under a pledge — or don't take non-cash collateral at all — but in the [[Regulatory IM]] regime that might be difficult, right? WE SHALL SEE.