Andy Creber of RBC Wealth Management explains how he
sees the AIFMD impact custodians and how his company is well
positioned to thrive within Guernsey's newly-regulated
environment.
The Alternative Investment Fund Managers Directive (AIFMD) will
come into effect in July 2013, creating a single regime for the
industry across Europe. This development, combined with wider
economic uncertainty, will have a significant impact on
custodians.
However, the sector in Guernsey continues to thrive as the
industry is transformed. The AIFMD measures make it clear that
custodians will be liable for lost assets held in their custody. In
order to avoid this liability, custodians will have to demonstrate:
that any loss was caused outside of their control; that they have
taken all reasonable precautions to avoid loss; and that the assets
were suitably protected. Furthermore, the directive does not allow
custodians to sub-delegate this liability to their appointed
sub-custodians.
