The Dutch legislator has published a consultation to its legislative proposal to amend the Act on the financial supervision (Wet op het financieel toezicht, AFS) in order to implement the 2014/91/EU Directive (amending Directive 2009/65/EC) (UCITS V).
The new rules are mostly applicable to depositaries of UCITS, such as their tasks, delegation arrangements and the depositaries’ liability, but also introduce general remuneration principles that apply to fund managers.
Although the purpose of the legislative proposal is to implement UCITS V, this proposal also impacts depositaries of alternative investment funds (AIFs). The legislative proposal introduces a licence obligation for entities acting as depositaries in the Netherlands for UCITS and AIFs. There is an exemption for banks and investment firms having a licence under which they are allowed to provide the ancillary services of safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management. This means that trust offices (referred to in Dutch as “trustkantoren”) who act as a depositary for UCITS and AIFs will have to apply for a licence. There is a transitional period until 18 March 2018 for entities that have been appointed as depositary before 18 March 2016.
View the Dutch legislator’s consultation (in Dutch).