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

CP12/32
Implementation of the Alternative Investment Fund Managers Directive
Transitional arrangements for appointing non-UK depositaries
Annex X
9.45 The Directive allows flexibility for a credit institution that is authorised and has its
registered office in the EU to act as depositary for AIFs established in any EEA State, for a
period of four years until July 2017. We propose to implement this so that UK AIFs (other
than authorised funds) may appoint an EEA (non-UK) credit institution in this role during
the transitional period. We believe that this may be helpful to AIFMs of UK AIFs, as we do
not yet know how many UK firms will be ready to act as AIF depositaries in the early days
after implementation.
9.46 We propose to exclude authorised funds (NURS and QIS) from this arrangement because
they are subject to a UK-specific regime that will be unfamiliar to non-UK depositaries.
Also, they already have a depositary and (unless the existing depositary withdraws from the
market) the AIFM should not need to appoint a new one to become AIFMD-compliant.
Even if a new appointment were necessary, we do not think a compelling case can be made
that switching to a non-UK depositary for a limited period and then switching back again
to a UK firm, when the transitional provision expires, would be in the best interests of
investors as long as there are alternative service providers in the UK.
Q17: Do you agree that EEA credit institutions should be allowed
to act as depositary to UK AIFs? If you expect to be an AIFM
of UK AIFs from 2013, would you consider using such a firm
as depositary?
Q18: Should authorised funds be excluded from this arrangement?
78 Financial Services Authority November 2012