Asset Segregation under the AIFMD

Responses to ESMA’s Consultation on Guidelines


On 1 December 2014 ESMA published a Consultation on Guidelines on Asset Segregation under the AIFMD (the Consultation Paper). We reviewed the Consultation Paper in our December newsletter.

In it, ESMA proposed five options for the segregation of assets by a sub-depositary, in circumstances where an AIF’s depositary had outsourced the custody of the AIF’s assets. 

In brief, ESMA proposed that the first two options were preferable and the remaining three should be discarded. We have reviewed some of the responses submitted by industry, and summarise their preferences and suggestions on how ESMA should proceed with the guidelines.

Responses to ESMA’s Consultation on Guidelines on Asset Segregation under the AIFMD

Next steps

ESMA are reviewing the feedback received and will publish finalised guidelines in Q2 2015. It will be interesting to see whether the weight of industry opposition to Options 1 and 2 and preference for Option 4 causes them to re-consider their proposals.

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