The European Securities and Markets Authority (ESMA) has published a consultation paper concerning guidelines on asset segregation under the Alternative Investment Fund Managers Directive (AIFMD).

The depositary provisions, particularly those on asset segregation, are a key aspect of the AIFMD framework and are aimed at improving investor protection. ESMA sees merit in fostering further convergence among supervisors across Europe on these provisions and has therefore decided to consult on a proposal for guidelines on the AIFMD asset segregation requirements.

Whilst the draft guidelines are of most immediate relevance to depositaries of alternative investment funds (and their delegates) they are also relevant to alternative investment fund managers (who are ultimately responsible for the compliance with AIFMD rules (recital 11 of the AIFMD)) and competent authorities.

The deadline for comments on the consultation paper is 30 January 2015.

ESMA will consider the feedback it receives to the consultation with a view to finalising the guidelines and publishing a final report in Q2 2015.

View ESMA consults on AIFMD asset segregation requirements, 1 December 2014.