Monthly Archives: June 2014

FCA starts to authorise prime brokers for AIFMD safe keeping

The FCA has started to authorise prime brokers to undertake the AIFMD Article 21(8)(a) safe keeping of financial instruments duties. A number of firms were authorised in recent days and more are expected to follow in the near future. This is important for any managers seeking to implement the AIFMD depositary-lite regime, since the majority will look to their prime brokers to undertake this duty.  Further details can be found in this COO connect article.

INDOS to speak at GAIM Ops Ireland Oct 2014

INDOS Financial’s Bill Prew will be speaking at the upcoming GAIM Ops Ireland conference in Wicklow, Ireland on October 8 – 10, 2014.  Bill will be discussing how a hedge fund manager has handled implementation of the Alternative Investment Fund Managers Directive and the lessons learned and what open issues remain. The conference itself will cover a range of topics including FATCA, ODD best practices, Service Provider oversight, developments in governance, and regulatory reporting. Full details of the event can be found by clicking here. The conference itself will cover a range

AIFMD State of the Industry Survey – Now Published

With the end of the AIFMD transitional period on 22 July approaching, INDOS Financial co-sponsored an HFM Week AIFMD State of the Industry Survey and Event to assess the thoughts and views of the industry in the run-up to this key milestone. The Survey Results have now been published and the results were debated at an event in London on 24 June moderated by INDOS Financial and attended by well over 100 industry participants. To read the full results visit the HFM Week website (subscription required) by clicking here… or email to request a copy.

INDOS Financial lists over 20 clients for AIFMD Depositary-Lite service


INDOS Financial lists over 20 clients for AIFMD Depositary-Lite services;
First client went live on 1st June

INDOS Financial Limited (“INDOS”), the first UK authorised Alternative Investment Fund Managers Directive (“AIFMD”) depositary, has commenced providing its independent AIFMD depositary-lite service to its first hedge fund client, and is preparing to go live with more than 20 others.

With the end of the AIFMD transitional period now only four weeks away on 22 July, European managers that wish to market non-EU alternative investment funds in Europe need to comply with the AIFMD’s depositary-lite requirements, or face marketing restrictions from this date.

Bill Prew, CEO of INDOS, said “We went live with our first client – the Westray European Equity Fund managed by Trium Investment Management – on 1 June. We are operationally ready and in an excellent position to support any other hedge funds that require a solution ahead of 22 July.”

Neil Cowhig, COO of Trium Investment Management, commented “We selected INDOS because we were looking for a regulated, independent depositary solution. They took a proactive and flexible approach, working closely with our other service providers, to set up the fund by our deadline.”

FCA reminder on AIFMD applications

The FCA has updated its website to remind AIFMs seeking authorisation to take effect from 22 July 2014, they need to provide the FCA with the information requested in sections 8.4 a) to c) of the variation of permission form – by 20 June 2014 at the latest.

The required information is:

  • a copy of the rules or instruments of incorporation of the AIFs managers intend to manage (for all AIFs, except Regulation 74 and 75 funds)
  • fund 3.2.2R disclosures (for all AIFs, except Regulation 74 and 75 funds)
  • confirmation that contractual arrangements are in place with all depositaries selected.

We also understand the FCA, as part of its review of variation of permission applications, is regularly requesting evidence of the due diligence managers have performed over their selected depositary providers. Managers may wish to use the INDOS Financial due diligence assessment checklist for this purpose. This can be downloaded here: AIFMD Depositary Due Diligence Assessment Checklist template