The EBF finds it most regrettable if a balanced approach cannot be found and it urges the Commission, MEPs and EU Member States to consider the concerns of its members as set out below and improve the draft regulation in order to bring it into line with the mandate set out in the level 1 Directive.
In brief, imposing a level of responsibility beyond the reasonable control of the depositary would result in a restriction of the coverage of the investments of the European managers, which would be detrimental to AIFs and UCITS. Furthermore, legislative certainty is crucial given the nature of the liability which is placed upon depositaries.
A short summary of these issues follows:
-
the scope of the custody should be defined as financial instruments on which the depositary has unfettered control over and its definition should provide legal certainty:
-
implementing measures should provide legal certainty on the strict liability regime of the depositary;
-
due diligences and segregation obligation should not go beyond the AIFMD level 1 requirements, should clearly and positively identify the circumstances and the areas where the depositary can perform effectively its due diligence duties and segregation duties on a reasonable basis;
-
letter box managing.
Full response
© EBF
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article