AIFMD 'depo-lite' financial strength questions

Do depository liability rules leave hedge funds defenceless?

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‘Depository-lite’ services deliver oversight over functions largely performed today by a fund administrator but not custody. With no strict liability for loss of assets, how safe are they? By Stuart Holman, principal at regulatory consultant CCL Compliance. Under the alternative investment fund managers directive (AIFMD), EU alternative investment funds (AIFs) managed by EU AIFMs must appoint a single depository and in most cases the depository must be domiciled in the same locati