Summary
FUND 3.11 of the FCA Handbook outlines how the Handbook organises requirements for depositaries appointed in relation to AIFs. It indicates which AIFMs and depositaries are in scope, highlights how the appointment of a single depositary is framed, sets out the way general obligations and conflicts of interest are structured, identifies headings that deal with eligibility and contractual arrangements, and groups the core depositary functions (cash monitoring, safekeeping, oversight) and related delegation, information and cross-border themes under discrete sub-sections. Core sections include:
Application
sets out which AIFMs, AIFs and depositaries fall within the scope of the depositories provisions in FUND 3.11.
Appointment of a single depositary
explains how the section frames the requirement for each in-scope AIF to have a single depositary and related references.
General obligations
groups together the overarching expectations that apply to depositaries in performing their role for AIFs.
Conflicts of interest: AIFM
describes how the section signposts conflict-of-interest considerations from the AIFM perspective in relation to the depositary.
Conflicts of interest: depositaries
highlights how conflict-of-interest themes specific to depositaries are addressed.
Eligible depositaries for UK AIFs
indicates how eligibility criteria for acting as a depositary to a UK AIF are organised.
Written contract
refers to the requirement for a written agreement and summarises how key contractual points are grouped.
Depositary functions: cash monitoring
identifies the sub-section dealing with the depositary’s cash-monitoring role for AIFs.
Depositary functions: safekeeping of financial instruments
groups references to how custody and safekeeping of financial instruments are treated.
Depositary functions: safekeeping of other assets
signposts how safekeeping arrangements for non-custodiable assets are described.
Reuse of assets
highlights how the section organises references to the reuse of AIF assets held by or through the depositary.
Depositary functions: oversight
brings together the headings dealing with the depositary’s oversight functions over certain AIFM activities.
Delegation: general prohibition
outlines how the starting position on delegating depositary functions is framed.
Delegation: safekeeping
indicates how the section structures conditions and references relating specifically to the delegation of safekeeping functions.
Delegation: countries other than the UK
identifies how cross-border delegation of safekeeping to entities in non-UK jurisdictions is addressed.
Delegation: sub-delegation
notes how the sub-delegation of delegated safekeeping functions is treated within the framework.
Delegation: omnibus account
highlights the specific heading that deals with omnibus account arrangements in the context of delegation.
Provision of information
summarises how depositaries’ information-provision duties to AIFMs, investors or authorities are grouped.
AIFM of a non-UK AIF
points to the sub-section addressing how the depositary regime is applied where the AIFM manages a non-UK AIF.
Subordinate measures
signposts AIFMD Level 2 and related technical measures that supplement the depositaries framework in FUND 3.11.
