CP12/32: Implementation of the Alternative ... - BVCA admin

9
Depositaries
November 2012
CP12/32
Implementation of the Alternative Investment Fund Managers Directive
9.1 This chapter describes our proposals for depositaries of AIFs, including who can be a
depositary, what capital requirements should apply, how the regime for ‘private equity AIF’
depositaries should work, the independence requirement for depositaries, rules for carrying
on depositary functions for non-EEA AIFs, and the transitional provision relating to EEA
credit institutions acting as AIF depositaries.
9.2 In Chapter 7 of DP12/1 we set out some of the key implementation issues relating to
depositaries of AIFs, including who can be appointed to the role, their duties and the extent
of their liability. Much of the detail relating to these issues will be determined by the Level
2 Regulation, but there are some areas of national discretion on which we are consulting.
9.3 FUND 3.11 transposes parts of Article 21 of the Directive, which prescribe the
requirements that AIF depositaries must follow. Other parts of Article 21, relating to the
depositary’s legal liability and the circumstances in which it can discharge that liability, will
be transposed by the Treasury regulations and will not be included in the Handbook.
9.4 FUND 3.11 contains rules and guidance on:
• the duties of the AIFM concerning appointing a depositary;
• general duties of the AIFM and depositary, and avoiding conflicts of interest;
• eligibility to be a depositary of an AIF;
• the functions of the depositary;
• delegating the safekeeping function; and
• performing depositary functions for a non-EEA AIF.
9.5 We are currently considering whether the rules in the Client Assets sourcebook (CASS) that
apply to depositaries are fully aligned with the Level 1 and Level 2 provisions of AIFMD.
We will address any matters that require a change to CASS, or a clarification, in CP2.
Financial Services Authority 69