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ARTICLE · 22 JULY 2019

New ESMA Q&A Addressing AIFMD And UCITS Depositary Issues

ELVINGER HOSS PRUSSEN, société anonyme
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On 4 June 2019, ESMA published updated questions and answers on the application of the Alternative Investment Fund Managers Directive ("AIFMD ") and the Undertakings for the Collective Investment in Transferable Securities ("UCITS ") Directive.

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

On 4 June 2019, ESMA published updated questions and answers on the application of the Alternative Investment Fund Managers Directive (" AIFMD") and the Undertakings for the Collective Investment in Transferable Securities (" UCITS") Directive.

These questions and answers relate to delegation issues for depositaries (including delegation to another legal entity within the same group) and to depositary's activities conducted by branches. In this context and in essence, ESMA provides that:

  • Supporting tasks linked to depositary functions may relate to cash monitoring and oversight and avoid the strict conditions imposed by the delegation regime of the AIFMD or the UCITS Directive provided that (i) these supporting tasks are standardised and pre-defined, (ii) their execution does not involve any discretionary judgement or interpretation by the third party in relation to the depositary functions, and (iii) their execution does not require specific expertise in regard

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