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 Investment in Transferable Securities (UCITS Directive).
ESMA first consulted on asset segregation under the AIFMD in December 2014 (Guidelines on asset segregation under the AIFMD). 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 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 AIF 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 consultation closes on 23 September 2016. The ESMA statement and the consultation paper are available here.