The 'AIFMD Depository Models 2014' special report comprises six separate articles listed below, these can be read individually or as a sequence.
SuMi TRUST Global Asset Services provides sophisticated fund administration and custody services in the UK and Ireland and is backed by Sumitomo Mitsui Trust Bank Ltd (SMTB), the largest Trust Bank in Asia with over USD3tn in assets under custody.
The Alternative Investment Fund Managers Directive (AIFMD) has many moving parts for alternative investment fund managers to get their heads around. But perhaps one of the most salient issues they face – particularly managers running offshore funds – is the requirement to appoint a depository.
By Gavin Byrnes, UBS Fund Services – The Alternative Investment Fund Managers Directive (“AIFMD”) has caused much rancour and debate over the last few years but at last the end is in sight. Some of the more challenging aspects of the Directive have centred on the Remuneration and Depository provisions, which the industry as a whole has struggled to understand and establish within their businesses.
Both depositories and fund administrators face huge demands from a data management perspective under the AIFM Directive. For any depository appointed by an AIFM running an onshore hedge fund, the scope of responsibility is greater than that required under a depository lite scenario for AIFMs running non-EU funds. This is because of the strict liability placed on the depository to return assets to the AIF in the event that something unforeseen happens and assets are lost.
ConceptONE LLC specialises in regulatory and risk reporting, an area of expertise that is fast gaining prominence as alternative fund managers begin to comprehend the enormity of regulatory compliance.
For the most part a lot of the drama surrounding the role of depositories and prime brokers under AIFMD has subsided. All parties concerned have pretty much fallen into line and are clear with what everyone’s roles and responsibilities will be. This is certainly true of Deutsche Bank who are fully AIFMD-compliant and already actively engaged in signing depository agreements with clients.