BNP Paribas Securities Services has reached over €1 trillion in assets held in its depositary bank in Europe, in its network covering 12 fund domiciles on the continent.
The bank expanded its depositary banking network in recent years in response to the Alternative Investment Fund Managers Directive (AIFMD) and impending Undertakings for Collective Investment in Transferable Securities (UCITS) V regulation, launching depositary offerings in the UK, Netherlands and Switzerland in 2013 and 2014.
It also acquired the depositary bank businesses of Commerzbank in Germany and Banco Popular in Spain.
Arnaud Claudon, head of depositary banking at BNP Paribas Securities Services, commented: “The shape of European regulation has changed incredibly in recent years, and we are being called upon by our clients more than ever to support them as they adapt to the new landscape. The expansion of our depositary bank is a great example of this.”
Under AIFMD, alternative investment fund managers in Europe have to appoint a depositary bank to provide safekeeping, oversight and cash monitoring for their funds.
The UCITS V regulation is expected to go live in early 2016 and will impose similar standards of asset and investor protection to all depositary banks in Europe.
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