AIFMD Depositary services

Effective as of 22 July 2014, pursuant to the Alternative Investment Fund Managers Directive 2011/61/EU (AIFMD), the rules for the marketing of funds (AIF) to EU investors have changed, whereby both managers of funds and self-managed funds must, under certain circumstances, appoint a depositary.

Acting in an independent capacity, based on continued activities in the business by TMF Group and its predecessors since 1936, our dedicated team can fulfil the fund depositary function in an efficient and sensible manner. We have ensured that the depositary team is able to perform its duties in an independent setting via TMF Depositary NV, allowing other parts of TMF Group to provide, if so desired, other services such as fund administration, compliance services, domiciliation and directors for legal entities in fund structures.

TMF Group Depositary services private equity and real estate funds as well as other fund types that do not primarily invest in financial instruments typically held in custody.

TMF Group is recognised as a world leader in providing a complete and independent service to fund managers and works with a vast majority of the world’s leading institutions. We can help you with both the primary depositary functions and the day-to-day oversight duties.

Primary tasks of the depositary are:

  • Cash flow monitoring: We monitor the relevant fund's cash flows, identify irregularities and reconcile the fund's records.
  • Asset verification: Our task extends to the controlled special purpose vehicles (SPV) incorporated to hold assets. The depositary's register is verified annually through an independent source and reconciled against the fund's records.

We also carry out a number of day-to-day duties in regards to your fund.

Oversight tasks of the depositary are:

  • Subscription and redemption: We check that all subscription amounts are paid into qualifying bank accounts in the name of the fund.
  • Valuation: We verify that net asset value (NAV) calculations carried out in regards of the fund conform to set valuation rules.
  • Settlement: We check that payment upon disposition of the fund’s assets is issued to the fund within the necessary time frames.
  • Income distributions (net income calculation): We monitor distribution proceeds upstream to investors and verify the calculation of management fee and carried interest.
  • Compliance with investment restrictions: We verify the fund portfolio's compliance against fund terms and monitor correct observance of such within the relevant leverage limits.

Compliance & risk management

TMF Group observes a robust Know Your Client ("KYC") and on-going compliance model, in order to carry out tasks in an accurate and timely manner, whilst records are securely held.

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If you would like to find out more about our depositary services, please get in touch.

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