EUROPEAN UNION: ESMA publish Guidelines on asset segregation under the AIFMD

Monday December 1 2014

The European Securities and Markets Authority (ESMA) have published a Consultation Paper on guidelines on asset segregation under the Alternative Investment Fund Managers Directive (AIFMD).

With a view to ensuring a common, uniform and consistent application of the rules on depositaries under the AIFMD and its implementing measures, ESMA has decided to develop guidelines on the AIFMD asset segregation requirements. In this consultation paper, ESMA is seeking feedback from external stakeholders on its proposal for those guidelines.

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. Section 2 explains the background to ESMA proposals. Section 3 describes the rules on asset segregation set out under the AIFMD Level 1 and 2. Section 4 sets out our proposal on the guidance on the asset segregation requirements in case of delegation of safe-keeping duties. This proposal is spelled out in two different possible options on which ESMA is seeking feedback from respondents to this consultation. Annex I provides for the summary of questions while Annex II includes the cost-benefit analysis. Annex III contains the full text of the draft guidelines.

ESMA will consider the feedback it receives to this consultation with a view to finalising the guidelines and publishing a final report in Q2 of 2015.

Click on the above link for further details.