ESMA issued a Call for Evidence on Asset Segregation and Custody Services. This follows a previous ESMA consultation on ‘Guidelines on Asset Segregation under the AIFMD’, and industry engagement with ESMA and the European Commission on the issue of asset segregation. UCITS are now also in scope as a result of UCITS V. ESMA is currently looking at the following areas:
- mapping of asset segregation models;
- understanding how investor protection in the event of insolvency would be ensured under the various models;
- understanding the issues linked to complexity and operational costs that arise from the current legislative framework;
- understanding the issues linked to collateral management/prime brokerage;
- understanding the issues linked to the T2S system;
- understanding the impact of segregation requirements on third countries;
- gathering views on the optimal asset segregation regime for achieving a strong level of investor protection without imposing unnecessary requirements; and
- gathering views on any uncertainties that could remain on how the depositary delegation rules should apply to CSDs.
Responses to the Call for Evidence are due by 23 September 2016.