Ipes Fund Services will launch an alternative investment fund depository at the end of Q1 2013 to support clients with meeting a requirement of the Alternative Investment Fund Managers Directive (AIFMD).
AIFMD requires funds that come under its remit to appoint an independent depository.
The firm worked with a consulting firm and a UK law firm on the new depository, which it expects to be operational in March subject to regulatory approval.
The Ipes Fund Services depository will offer functions for both custody and non-custody asset types as defined under AIFMD, including asset safekeeping and verification, cash overflow monitoring, and operational oversight.
“Much of the concern regarding the new depository requirement centred around unnecessary duplication of work and higher costs and this is where working with an administrator can be advantageous,” said a statement from the firm.
“We anticipate that through providing a depository service to our clients, we will be able to eliminate duplicate work and reduce the associated costs, by up to 50 percent or more, as we are already undertaking tasks such as such as recording and executing cash payments and signing off on investment transactions which tie into the cash monitoring and asset verification requirements.”
It added: “When choosing a depository, fund managers should undertake a detailed review of the type of assets held and then look at all the options in the market for service provision. It is an important decision and we are having discussions with our clients regarding their fund structures and depositary requirements.”
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