Consultation on Guernsey Depositary Requirements under Article 36 of AIFMD

Under Article 36 of AIFMD an EEA AIFM may market to professional investors, units or shares of non-EEA AIF so long as it ensures that one or more entities are appointed to carry out the depositary duties referred to in Article 21(7), (8) and (9) of AIFMD. The EEA AIFM shall not perform those functions.  The Commission does not consider that Guernsey Depositaries need to opt in to comply with The AIFMD Rules, 2013 made under the POI Law to provide such a service.  It is considered that Guernsey Depositaries can provide these services on a contractual basis with the EEA AIFM.  Although Guernsey Depositaries are not required to opt in to comply with The AIFMD Rules, 2013, the Commission has received feedback from the Guernsey investment fund industry that some form of Commission Guidance would be beneficial. 

The Commission, in conjunction with the GIFA Custodian and Depositary Committee, has been seeking to identify the most efficient means of accommodating Article 36 of AIFMD into the Bailiwick’s regulatory framework with a view to minimising the impact on fund products, which are not in scope.  The result is Guidance Notes, which are predominantly based on AIFMD and the Level 2 Regulations.  

Guernsey depositaries and Guernsey authorised or registered collective investment schemes, whose controlled investment business falls within the remit of Article 36 of AIFMD.

Please click here for the Consultation Paper

Please click here for the draft Guidance Notes

Please provide any responses on the Consultation Paper to [email protected]/* */ by close of business on 12 September 2014.