What is AIFMD depositary?

AIFMD – Depositary Requirements. The Alternative Investment Funds Management Directive (“AIFMD”) requires Alternative Investment Fund Managers (“AIFMs”) to appoint a single. depository to all Alternative Investment Funds (“AIFs”) that they manage and introduces new depository requirements in relation to their AIFs.*

What is an AIF under AIFMD?

Under AIFMD, an alternative investment fund or “AIF” is: Both open-ended and closed-ended vehicles and listed and un-listed vehicles can be AIFs for the purposes of AIFMD. The definition captures a broad range of vehicles that would be regarded as “funds”, including all non-UCITS investment funds, wherever established.

Does a small AIFM need a depositary?

7.1. 2 Small AIFMs will not be required to appoint a depositary to their AIFs, and will also not have to apply the Directive’s requirements to their delegates or agents. 7.2. 1 Many other EEA jurisdictions outside the UK do not fully recognise the small AIFM regime.

What is the role of the depositary under the AIFMD?

The Role of the Depositary under the AIFMD and the AIF Rulebook One of the primary stated aims of the Alternative Investment Fund Managers Directive1(AIFMD) was to increase investor protection2.

What are Level 2 regulations for AIFM and AIF?

The Level 2 Regulations specify the matters which must be addressed in the written agreement between the depositary and the AIFM and/or AIF. These matters are extensive, and include the following: a description of the depositary’s services and the procedures for each type of asset of the AIF that is entrusted to the depositary;

Do you have to appoint a depositary for an AIF?

The AIFMD does not purport to regulate AIFs directly. Accordingly it does not require AIFs to appoint a depositary (except where the AIF also constitutes the AIFMD, as is the case, for example, with self-managed investment companies) but rather imposes the requirement upon the relevant AIFM to 5See “Liability Standard “below for more

Can a depositary sign a framework agreement with an AIFM?

It will be possible for the AIFM and the depositary to enter into a framework agreement that applies to a number of AIFs managed by the AIFM. The Level 2 Regulations specify the matters which must be addressed in the written agreement between the depositary and the AIFM and/or AIF. These matters are extensive, and include the following: