An industry checklist has been unveiled to assist hedge fund managers to undertake due-diligence over their depositary providers.
The ‘AIFMD Hedge Fund DD checklist’, constructed by professional services firm Kinetic Partners, is constructed for a range of alternative investment fund managers in different domiciles to help them achieve Alternative Investment Fund Managers Directive (AIFMD) compliance. The checklist has been developed from Kinetic Partner’s experience of real-life challenges faced by firms as they adapt and review their businesses in respect of AIFMD.
Andrew Shrimpton, global head of Regulatory compliance, at Kinetic Partners, said:
“Many EU hedge fund managers will need to comply with AIFMD and there are differing requirements for appointing depositories. The exact requirements will depend on a combination of the domicile of the managers, their hedge funds and how they are being marketed. We hope this checklist can assist managers in this area.”
The checklist covers eight key areas:
-Regulatory Authorization
-Financial Strength
-General Matters
-Operating Model
-On-boarding
-Costs
-Legal Terms
-Future Developments
UK managers will need to provide a summary of the due diligence undertaken in their Full Scope AIFMD Variation of Permission applications to the Financial Conduct Authority in the U.K., and be in a position to share further details of the due diligence undertaken on request by the FCA.
Kinetic Partners Provides Checklist For AIFMD Compliance
An industry checklist has been unveiled to assist hedge fund managers to undertake due-diligence over their depositary providers.