What Does A Depositary Really Do?

Transcription

1 What Does A Depositary Really Do? To hear the audio discussion, please call into the conference line using the relevant dial-in number and following conference ID: Conference ID: Direct Event Passcode (if prompted): Singapore: Hong Kong: Indonesia: China: Malaysia: India: Ireland: France: Standard International Dial-In Number: +44 (0) nd December 2015 Please submit any questions during the discussion via your WebEx chat facility

2 Our Panel Alexander Traub Managing Director - Asia Augentius Group Dermot Deering Managing Director Augentius Depositary Pat McIntyre Compliance Officer Augentius Depositary 2

3 Who Needs A Depositary? Under the EU s Alternative Investment Fund Managers Directive or AIFMD, non-eu/ Asian alternative investment fund managers or AIFMs may only market their non- EU/ Asian alternative investment funds or AIFs in the EU through each EU state s national private placement regime, where available. A condition of this, specifically in certain EU states including Denmark and Germany, is that you appoint a depositary, such as Augentius, to provide your AIF with depositary-lite services. Access to the EU passport has not yet been granted to non-eu AIFMs. 3

4 What Type Of Depositary? EU Fund Non-EU Fund EU Fund Manager Full scope depositary Depositary-lite Non-EU Fund Manager Depositary-lite may be required under specific national private placement regimes Depositary-lite may be required under specific national private placement regimes 4

5 The Role Of The Depositary The Depositary has three main functions: Cash monitoring Ensuring on a day to day basis that cash is applied for the benefit of the fund Asset verification Ensuring that the assets are properly registered in the name of the fund Oversight and compliance Oversight of the manager s processes 5

6 Registering Your Fund With The Regulators National Private Placement regimes: Certain EU states National Private Placement regimes, including: Germany Austria Denmark Spain require a depositary. 6

7 Risk Analysis And Compliance Responsibilities The Depositary provides operational oversight to ensure that transactions and valuations are in accordance with fund documents and the AIFMD. How we can assist you We help identify any gaps in the fund s / AIFM s internal procedures and documentation. 7

8 The Role Of The Depositary The Depositary has three main functions: Cash monitoring Ensuring on a day to day basis that cash is applied for the benefit of the fund Asset verification Ensuring that the assets are properly registered in the name of the fund Oversight and compliance Oversight of the manager s processes 8

9 Cash Monitoring Responsibilities of the Depositary The Depositary: Ensures that all payments upon the subscription of shares/ units of an AIF have been received and booked in one or more cash accounts. Identifies on a timely basis significant cash flows. Implements effective procedures to reconcile all cash flow movements on a daily basis or when such cashflow movements occur. We interface with your banks and others, while causing minimal disruption to your existing procedures and practices. 9

10 Augentius Cash Monitoring Solution 10

11 Asset Verification Responsibilities of the depositary The Depositary ensures that the fund s assets are properly registered - and continue to be registered - in the name of the AIF. The Depositary will establish title and confirm registration and ownership of assets such as equity and debt holdings of private companies, real estate, infrastructure, etc. Where applicable, financial instruments that can be held in custody will be held with a global sub-custodian in segregated accounts. 11

12 Why Appoint Augentius Depositary? Augentius Depositary is part of one of the world s largest independent Private Equity and Real Estate fund administration groups. We set the standard for Depositary services across the industry, working with regulators in the development of the UK s AIFMD legislation, and with leading UK, US and Asian managers in the development of our Depositary services. We can assist with you with authorisation, reporting obligations and ongoing compliance. Our core qualities are pragmatism, flexibility and a light-touch approach. Our discreet and economical depositary service causes minimal disruption to your existing procedures and practices. 12

13 Contact us Alexander Traub Managing Director - Asia Augentius Group alexander.traub@augentius.com Dermot Deering Managing Director Augentius Depositary dermot.deering@augentiusdepositary.com Pat McIntyre Compliance Officer Augentius Depositary Pat.McIntyre@augentiusdepositary.com