ESMA advises Commission on UCITS V delegated acts: ESMA has published its advice to the Commission on two delegated acts the Commission may make under UCITS V. The advices cover:

  • insolvency protection for UCITS assets when delegating safekeeping: The advice suggests what the Commission should require in terms of measures, arrangements and tasks for the third party to which custody is delegated and measures the depositary should put in place; and
  • the independence requirement: The advice identifies two types of link between the management or investment company and the depositary that may jeopardise independence and suggests how to address the risks. The links ESMA identifies are common management and/or supervision and cross-shareholdings between entities.

(Source: ESMA Advises Commission on UCITS V Delegated Acts)

ESMA consults on AIFMD asset segregation requirements: ESMA is consulting on two options for possible guidelines on asset segregation where the depositary of an alternative investment fund (AIF) delegates safe-keeping duties. One option would require the AIF to keep separately the assets of AIFs delegated by each depositary from other assets, but would allow co-mingling of assets delegated by different depositaries. The other would require that AIF assets may be kept only with other AIF assets where delegated by the same depositary. ESMA expresses no preference, and seeks views on these two options as well as inviting suggestions for alternative options. ESMA seeks views by 30 January 2015. (Source: ESMA Consults on AIFMD Asset Segregation Requirements)