Keeping up with AIFMD
The publication of the defi nitive version of the Alternative Investment Fund Managers Directive (AIFMD) continues a story about the responsibilities of the custodian trustee that started in 2006 and which was accelerated by the collapse of Lehman Brothers in September 2008. It is a story that underlines an important advantage enjoyed by SGSS, which has built up a wealth of experience in recent years in meeting existing French regulatory requirements which are more stringent than those imposed in other countries.
“Greater legal liability is being placed on custodians in their trustee role,” says Etienne Deniau, Head of Custody and Trustee Services at SGSS. “They will be made to provide better levels of protection to investors; only the strongest institutions will be able to cope.”
This signifi cant tightening of the rules also places heightened attention on subcustody networks. “Custodians and their clients will need to select and appoint subcustodians even more carefully post-AIFMD than in the past, to ensure they are 100% capable of returning assets as required,” adds Etienne Deniau. “Those of us who already have a strong sub-custody network will have an additional inherent advantage over other would-be providers.”