The robust ownership verification that a good depositary
provides is vital to supporting new AIFMs and protecting investors
against unprecedented economic volatility, writes TMF
Luxembourg's Jean-Francois Flamant.
The Alternative Investment Fund Managers Directive (AIFMD),
introduced in 2013 after the financial crisis fueled by events such
as the Madoff investment scandal and Lehman Brothers collapse, was
largely designed to bolster investor protection.
Now, COVID-19 is pushing the financial world towards another
crisis, putting independent oversight roles in the spotlight again.
Depositary roles are particularly confidence-enhancing for new
alternative investment fund managers (AIFMs), reassuring investors
that they aren't exposed to negligent fund management.
