Luxembourg Funds - Depositary

The course provides a comprehensive overview of the depositary function for Luxembourg-based Undertakings for Collective Investment (UCIs), covering essential aspects such as qualifications, duties, and liability of depositaries, along with the applicable rules and regulations. The introduction outlines the regulatory framework affecting depositaries, including the AIFMD and UCITS V directives, while explaining the distinction between full AIFM regime AIFs and simplified AIFM registration regime AIFs.The section on Eligible Entities explores the qualifications required for depositaries of different types of UCIs, including UCITS, AIFs, and Professional Depositaries of Assets other than Financial Instruments (PDAOFIs), emphasizing regulatory compliance. It also discusses the role of Investment Firms, Virtual Asset Service Providers (VASPs), and the qualifications depositaries must meet for each regime.In the Duties section, depositaries are responsible for asset safekeeping, cash flow monitoring, and overseeing key operations like subscriptions, redemptions, and valuations. Safekeeping requirements vary depending on asset type, with specialized rules for virtual and crypto-assets. The course also addresses Conduct of Business and Conflicts of Interest Rules, ensuring robust internal procedures and conflict management.Finally, the Liability and Delegation sections outline when depositaries can delegate tasks and their accountability for asset loss. The roles of Prime Brokers and VASPs further illustrate the evolving nature of depositary responsibilities in the modern financial landscape.