PB lobbying perceived to soften Esma on asset segregation

Surprise AIFMD provisions do not require strict AIF segregation


Prime brokers may get off lightly if one of two options outlined in a consultation paper issued by the European Securities and Markets Authority (Esma) is implemented, according to some in the industry who question whether asset segregation requirements under the alternative investment fund managers directive (AIFMD) are at risk of being watered down.

In the paper, Esma proposes two solutions to asset segregation. Under the first option, the account on which the alternative investment fund's (AI