EUROPEAN UNION: ESMA Clarifies AIFMD Provisions on Depositaries and CSDs

Friday October 2 2015

The European Securities and Markets Authority (ESMA) has published its updated Questions and Answers document (Q&A) for the Alternative Investment Funds Management Directive (AIFMD) in relation to depositaries.

The Q&A now clarifies that when assets of an AIF held in custody by the depositary of the AIF are provided by that depositary to a CSD or a third country CSD as defined under Regulation (EU) No 909/2014 (CSDR) in order to be held in custody in accordance with Article 21(8) of the AIFMD, the CSD or third country CSD must comply with the provisions on delegation set out under Article 21(11) of the AIFMD.

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