Cadwalader Attorneys Analyze Delegation Requirements Under EU AIFMD Regime

Beginning in April 2020, depositaries under the EU Alternative Investment Fund Managers Directive ("AIFMD") must obtain independent legal advice with regard to protections afforded to the assets under the control of U.S. sub-custodians who want to act as delegates of the AIFMD depositary.

AIFMD is the regime that regulates EU managers of unregulated funds. The Alternative Investment Fund Manager is obligated to appoint a single depositary for each Alternative Investment Fund ("AIF") that it manages. As described more fully in a Cadwalader memorandum, the depositary under the AIFMD is responsible for, among other things:

• ensuring that investor money and cash belonging to the AIF is booked correctly on accounts opened under the name of the AIF;