ARTICLE · 05 FEBRUARY 2015

ESMA Guidelines - Asset Segregation

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Asset segregation is one of the provisions of more relevance when it comes to depositaries under Directive 2011/61/EU of the European Parliament.

European UnionFinance and Banking

Bonn Steichen & Partners

Asset segregation is one of the provisions of more relevance when it comes to depositaries under Directive 2011/61/EU of the European Parliament and of the Council of June 8^th 2011 on Alternative Investment Fund Manager (the "AIFMD") and it is aimed at improving investor protection.

Under AIFMD, a single depositary must be appointed for each AIF managed by an AIFM and such depositary shall ensure that the assets of the AIFs are held in segregated accounts. However, the segregation rules not only impact the depositary itself but are also of relevance at the level of its delegates, prime brokers and collateral managers.

On December 1^st 2014 the European Securities and Markets Authority ("ESMA") issued a Consultation Paper on Guidelines on asset segregation under AIFMD.

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