Template:Ucits delegaton versus aifmd delegation: Difference between revisions

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===Delegation of safekeeping under {{t|UCITS}} and {{t|AIFMD}} look kind of similar don’t they?===
===Custody delegation under {{t|UCITS}} and {{t|AIFMD}} looks kind of similar doesn’t it?===
Yes, they do. The textual differences betwixt {{t|UCITS}} (Art {{ucits5prov|22a}}) and {{t|AIFMD}} (Art {{aifmdprov|21(11)}}) are ''largely'' formal, or ''[[mutatis mutandis]]'' style. The main substantive differences are:
Yes, it does. The textual differences betwixt {{t|UCITS}} (Art {{ucits5prov|22a}}) and {{t|AIFMD}} (Art {{aifmdprov|21(11)}}) are ''largely'' formal, or ''[[mutatis mutandis]]'' in style. The substantive differences are that a {{t|UCITS}} {{ucits5prov|depositary}}:
*A {{t|UCITS}} {{ucits5prov|depositary}} is not allowed to reuse the UCITS’ assets at all, rather that only with prior notification and consent as under AIFMD;
*cannot [[reuse]] the UCITS’ assets ''at all'', whereas an AIFMD {{aifmdprov|depositary}} can, with prior notification and consent;
*A {{t|UCITS}} {{ucits5prov|depositary}}must take all necessary steps to ensure UCITS’ assets aren’t caught up in the bankruptcy estate of an insolvent custodian;
*must take all necessary steps to ensure {{t|UCITS}}assets aren’t caught up in the bankruptcy estate of an insolvent delegate custodian — there isn’t an equivalent provision under {{t|AIFMD}}, though perhaps you might imply it;
*Where a non-EEA jurisdiction requires use of a local custodian and no local entities satisfy the delegation requirements, {{t|UCITS}} investors must be notified of the risks of such a delegation and not just the fact or, and circumstances justifying, it.
*must notify {{t|UCITS}} investors of the risks of delegation where a non-EEA jurisdiction requires use of a local custodian and no local entities satisfy the delegation requirements and not just the fact of, and circumstances justifying, it.

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