The Delegated Regulations on clarifying depositaries’ safe keeping obligations under both the AIFMD (Commission Delegated Regulation (EU) 2018/1618) and the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive (Commission Delegated Regulation (EU) 2018/1619) have been published in the Official Journal of the EU (OJ). The Delegated Regulations will enter into force on 19 November 2018 and apply from 1 April 2020.

The Delegated Regulations:

  • specify depositaries’ duties with regard to safe-keeping of AIFs / UCITS;
  • require that where a depositary delegates safe-keeping functions to third parties (custodians) the assets also need to be segregated at the level of the delegate; and
  • outline how the obligations are to be fulfilled.