INDOS Financial has submitted an application to the Financial Conduct Authority for authorisation as a depositary. INDOS plans to provide independent depositary oversight services to hedge fund managers seeking to comply with the long-awaited Alternative Investment Fund Managers Directive (AIFMD) which becomes law on 22 July 2013.
Under the AIFMD UK hedge fund managers marketing offshore hedge funds to European investors are required to comply with the so-called “depositary-lite” regime. These new rules require funds to appoint a firm such as INDOS to perform oversight over fund valuation, subscriptions and redemptions, compliance with laws, regulations and investment guidelines.
Bill Prew (pictured), founder of INDOS, says: “Many hedge funds will face a challenge appointing an AIFMD depositary and they are looking for firms such as INDOS to provide a pragmatic and flexible solution. We aim to become the only UK regulated independent depositary specialising in hedge funds and, unlike other depositary businesses today, we will work with most leading fund administrators and perform 100 per cent arms-length oversight.”
Andrew Shrimpton, member, Kinetic Partners, says: “With the introduction of AIFMD this year, much of the hedge fund industry is looking for independent depositary oversight solutions to achieve compliance with the directive. The changes made by HMT as part of the UK investment management strategy has encouraged new business models to enter the market; we are pleased to be able to support INDOS with their application to become authorised with the FCA.”