The depositary provisions – in particular those on asset segregation – are a key aspect of the AIFMD framework and are aimed at improving investor protection.
The European Securities and Markets Authority (ESMA) has published a consultation paper on the AIFMD asset segregation requirements. The consultation runs until 30 January 2015. ESMA aims at publishing a final report on the guidelines in the second quarter of 2015.
This consultation paper sets out ESMA’s proposals for possible guidelines regarding the asset segregation requirements in case of delegation of safe-keeping duties by the appointed depositary of an AIF. ESMA sees merit in further fostering convergence among supervisors across Europe on these provisions.
The consultation paper clarifies that the account where the AIF’s assets are to be kept at the level of the delegated third party can only comprise assets of the AIF for which the safe-keeping has been delegated to the third party and assets of other AIFs. Non-AIF assets cannot be included in such an account.
There are two possible options on which ESMA is seeking feedback from respondents to this consultation:
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Option 1: a delegated third party holding assets for multiple depositary clients would not be required to have separate accounts for the AIF assets of each of the delegating depositaries
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Option 2: the account on which the AIF’s assets are to be kept by the delegated third party may only comprise assets of the AIF and assets of other AIFs of the same delegating depositary. Assets of AIFs of other depositary clients would have to be kept in separate accounts
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