Supporting depositary banks in managing challenges under AIFMD & UCITS V
The fifth Undertakings for Collective Investment in Transferable Securities (UCITS V) directive – transposed into national EU laws on 18 March 2016 – and the Alternative Investment Fund Manager Directive (AIFMD) are reshaping the operational landscape of the European investment funds market. The objective of both directives is to implement a framework for the regulation and supervision of investment funds, to increase transparency and ensure greater investor protection.
Market participants, in particular those appointed as depositary banks, are facing significant operational and legal challenges which may affect their operating model, including their use of market infrastructure providers.
Since 2015, Clearstream has been offering two comprehensive reports to support depositary banks in effectively monitoring the performance of the underlying custody chain and in assessing the risks they could be exposed to in relation to transfer agents (TAs), registrars and processing agents:
- A Domestic Markets Monitoring Report (DMMR) on securities held through our extensive network of 56 domestic markets and more than 90 links to local CSDs as well as information related to its sub-custodian selection and review process.
- A specific Registrar Monitoring Report (RMR) for securities held in the fund’s register kept by registrars and TAs.