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ARTICLE · 07 MARCH 2018

Changes To Depositary Regime Applying To Part II Funds

ELVINGER HOSS PRUSSEN, société anonyme
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The Luxembourg Law of 17 December 2010 ("UCI Law") is amended with effect from 5 March 2018 to provide that for undertakings for collective investment governed by Part II of the UCI Law...

LuxembourgFinance and Banking
Olivia Moessner
Olivia Moessner

The Luxembourg Law of 17 December 2010 ("UCI Law") is amended with effect from 5 March 2018 to provide that for undertakings for collective investment governed by Part II of the UCI Law ("Part II Funds") which are managed by an authorised AIFM and whose issuing documents do not allow the marketing of their shares to retail investors on Luxembourg territory, the AIFMD depositary regime shall apply rather than the UCITS depositary regime.

As a reminder and in a nutshell, the UCITS depositary regime and the AIFMD depositary regime differ in that the AIFMD depositary regime permits (i) contractually agreed transfer of liability from the depositary to a sub-depositary (including a broker acting as sub-depositary) and (ii) extended possibilities for rehypothecation.

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