On the 4th June 2019 the European Securities and Markets Authority ('ESMA') published updated questions and answers documents (Q&A) on the application of (i) the Alternative Investment Fund Managers Directive ('AIFMD') and (ii) the Undertakings for the Collective Investment in Transferable Securities ('UCITS') Directive (‘the Q&A documents’). The revised sections in the Q&A documents concern inter alia:
- The distinction between depository functions and mere supporting tasks that are not subject to the delegation requirements set out in the AIFMD and UCITS Directive;
- Delegation of safekeeping functions;
- Performance of depository functions where there are branches in other Member States;
- Supervision of depository functions in case of branches in other Member States; and
- Delegation of depository functions to another legal entity within the same group.
The Q&A documents aim to promote common supervisory approaches and practices in relation to the AIFMD and UCITS Directive and their implementation measures in relation to the depository function. The Q&A documents can be found here: AIFMD, UCITS.