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
"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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