The Commission is consulting on the UCITS depositary function. It is part of a review of existing principles and is important because the Madoff fraud showed up the different ways in which Member States have transposed obligations. Also the role of depositaries is an important part of the AIFD. The consultation asks for views on:  

  • duties of depositaries: in particular on harmonisation of safekeeping and supervisory duties;  
  • investor protection: how to improve investors' positions where a depositary performs improperly or becomes insolvent;  
  • "SYSC" type rules: The Commission asks whether it should introduce organisational and conflicts management rules similar to MiFID rules; and  
  • eligibility criteria: whether the Commission should apply the same tests to UCITS depositaries as it proposes under the AIFD, so they would need to be EU credit institutions.  

The Commission asks for comment by 15 September.