EUROPEAN UNION: Commission Provides Further Clarity on Safekeeping of Assets

Friday August 3 2018

The Commission has adopted new rules to ensure more clarity and consistency in how assets are kept separated so that investors are better protected and so as to ensure more market efficiency.

The new rules are designed to eliminate differing interpretations among national competent authorities and market participants of existing EU requirements on how to keep assets separated.

The new rules take the form of delegated regulations supplementing the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive.

They clarify the requirements regarding the safekeeping duties of the funds’ depositaries – depositaries are financial institutions which provide fiduciary/custodian services for alternative investment funds (AIFs) and UCITS.

The changes will apply as of spring 2020 if the European Parliament and the Council raise no objections.

Click here for Implementing and delegated acts for AIFMD
Click here for Implementing and delegated acts for UCITS Directive

Click on the link above for further information.