The European Securities and Markets Authority (ESMA) has published a Call for Evidence on asset segregation and custody services under the Alternative Investment Fund Managers Directive (AIFMD) and the Directive on Undertakings for Collective Investments in Transferable Securities (UCITS Directive).
ESMA first consulted on asset segregation under the AIFMD in December 2014. However, given the majority of respondents objected to the two options on which ESMA consulted, coupled with the fact that the new UCITS V Directive has recently introduced asset segregation requirements which are broadly aligned to the AIFMD, ESMA has decided to carry out a further consultation. This Call for Evidence has a broader scope than the initial consultation as it also covers asset segregation rules under the UCITS IV Directive and any residual uncertainty on how the depositary delegation rules should apply to central securities depositaries.
ESMA is particularly interested in gathering views on any asset segregation regime which ensures assets are clearly identifiable as belonging to the alternative investment fund or UCITS, and which provides investors with robust protection by avoiding ownership of the assets being called into question in the event of insolvency.
The deadline for responding to the Call for Evidence is 23 September 2016.