Regulatory Update Alert AIFs And UCITS: New Depositary Safekeeping Rules

The Alternative Investment Fund Managers Directive ("AIFMD") has been widely regarded by European regulators and industry players alike, as a very powerful and proficient tool, responsible for the establishment of a coherent and integrated legislative framework amongst Member States in the European Union.

As with every legislative instrument, time has come for further fine tuning and clarification. Accordingly, on the 16th of April 2019, the European Parliament voted a new set of regulations with the aim being to tackle some of the issues identified within ESMA's report on the 20 of July 2017.

More specifically, the measures introduced cover four categories and aim to strengthen the Depositaries' position in case where a Depositary elects to delegate its safe keeping functions.