On December 1, 2014, the European Securities and Markets Authority (“ESMA”) published proposed guidelines on the asset segregation requirements when safe- keeping duties are delegated by the depository of an alternative investment fund (“AIF”) under the Alternative Investment Fund Managers Directive. The third party to which safe-keeping of an AIF’s assets is delegated is under a duty to segregate those assets from its own assets, the assets of its other clients, the delegating depositaries own assets and assets of clients of the depositary which are not AIFs. Therefore an account for AIF assets only must be held by the third   party. ESMA is seeking to address the question of whether the assets held in such an AIF asset account can only be assets which come from the same delegating depositary or whether the AIF asset account can hold AIF assets from different delegating depositaries. ESMA is proposing that the guidelines, once finalized, would apply to Alternative Investment Fund Managers, depositaries of AIFs and national regulators. The consultation closes on January 30, 2015.

The consultation paper is available at: