INDOS Financial, the first independent UK authorised depositary specialising in hedge funds, is planning to offer a depositary-lite solution to US and other non-EU hedge fund managers.
Since the introduction of the AIFMD in July 2013, US and other non-EU hedge fund managers have needed to comply with a range of requirements in order to market their funds to European investors.
Some countries, notably Germany and Denmark, require compliance with the so-called ‘depositary-lite’ regime which requires the appointment of one or more firms to perform the depositary duties of safe keeping of assets, cash flow monitoring and oversight.
Bill Prew, founder and CEO of INDOS, says: “There have been many reports suggesting non-EU managers will cease to market their funds in Europe as a consequence of the AIFMD. This will no doubt be the case for some firms, but we have spoken to a number of managers where this simply isn’t true – they want to market to the EU and are looking for guidance, support and solutions to understand and comply with the new rules.
“Where local regulations require we can provide a depositary-lite solution for managers but, more broadly, we are also able to share our significant experience of the AIFMD with any prospective clients. We can help clients navigate the rules in a pragmatic way and introduce other specialist firms that, together with INDOS, will provide managers with all the building blocks required for compliance.”