New reporting boosts AIFMD compliance
As the Alternative Investment Fund Manager Directive (AIFMD) enters into force on 22 July 2014, market participants should act now to manage their new obligations. The launch of Clearstream’s new Domestic Markets Monitoring Report on its custody links is designed to increase transparency in the custody chain and thereby supports depositary banks in complying with new requirements under AIFMD.
Impact on depositary banks
AIFMD affects depositary banks offering custody services on behalf of alternative investment funds. These institutions will be required to provide an oversight of the fund’s investment activities to keep custody risk in a market or a sub-custodian under control.
Scope of the report
The report provides full transparency on the structure of the domestic market (i.e. account structures, audits) and information on Clearstream’s extensive network of 53 domestic markets and 90 links to local central securities depositories (CSDs) as well as information related to its sub-custodian selection and review process. Currently, the new reporting service covers 30 domestic markets; the full set of market links will be available before AIFMD enters into force on 22 July 2014.
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