Alternative Investment Management Association Representing the global hedge fund industry
22 October 2012
The Alternative Investment Management Association (AIMA), the global hedge fund association, has called for the establishment of a UCITS (Undertakings for Collective Investment in Transferable Securities) depositary “passport” regime in its Position Paper on the proposal for a UCITS V Directive.
AIMA said that institutions authorised by one European Union country to act as a UCITS depositary should be granted automatic rights to provide the same services throughout the EU. Currently, the Directive limits the provision of depositary services to funds located in the same Member State as the depositary institution.
Such a UCITS depositary “passport” would allow for cross border provision of depositary services, based on harmonisation of depositary obligations which at present often differ from EU member state to member state, AIMA said.
The AIMA paper makes a number of recommendations, including several relating to the obligations and liabilities of UCITS depositary institutions.
In the paper, AIMA also called on the European institutions to align UCITS depositary regimes and remuneration requirements with those of the Alternative Investment Fund Managers Directive (AIFMD), which will be implemented in July 2013. AIMA also said the UCITS V Directive should allow depositaries to discharge their liabilities in certain circumstances. Another of AIMA’s recommendations was that the list of eligible assets in which a UCITS fund can invest should be expanded to include commodity derivatives.
The European Commission published its proposal for a UCITS V Directive in July. The final text may be adopted during 2013 although there is no formal timetable at present.
Andrew Baker, AIMA’s CEO, said: “We welcome much that is contained in the Commission’s proposal to amend the UCITS Directive, but as our position paper makes clear, we believe that the time has come for a proper discussion about introducing a depositary passport. Such a passport would bring more competition and more choice for managers and investors and would remove a significant barrier to the single market. Without it, there is a risk of a lack of competition in the depositary space and increased systemic risk as a result."
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For media enquiries, please contact Christen Thomson, AIMA’s Director of External Affairs. Tel: +44 (0)20 7822 8380; Email: email@example.com
To download the AIMA Position Paper – UCITS V, click here:
As the global hedge fund association, the Alternative Investment Management Association (AIMA) has over 1,300 corporate members (with over 6,000 individual contacts) worldwide, based in over 50 countries.
Members include hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. They all benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators worldwide.
AIMA is a dynamic organisation that reflects its members’ interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website, www.aima.org.