Investors will pay for AIFMD, says Luxembourg regulator
Tue Dec 6, 2011
Investors will bear the brunt of the Alternative Investment
Fund Managers Directive because depositary liabilities may
result in increased costs, according to Jean-Marc Goy from the
Luxembourg regulator CSSF.
Goy, counsel for international affairs at the Luxembourg
financial regulator CSSF, explained that he feared that the
advice from European Securities and Markets Authority regarding
the strict liability of depositary might be counterproductive
and that costs would just be passed onto investors.
He told the Association of the Luxembourg Fund
Industry’s European alternative investment funds
conference: "ESMA advice is setting up a system where the
depository has a very strict liability through a very sensitive
definition of financial assets that can be held in custody,
loss of financial of financial assets and a restrictive
definition of an external event.
"We fear that this may leave us with a situation where costs
[are] increased and passed onto investors. It may increase
ISSN: 2151-1845 / CDC10004H
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