14 Sep, 2023
Depositary Agreement Aif
Posted by: Hector Danilo Pompa Dominique In: Uncategorized
A depositary agreement is an agreement made between an Alternative Investment Fund (AIF) and its depositary, which is responsible for the safekeeping of the AIF`s assets. The main purpose of the depositary agreement is to ensure that the assets of the AIF are protected from loss or damage, and that they are managed in accordance with the AIF`s investment policy.
The AIF depositary is a financial institution that is responsible for the safekeeping of the assets of an AIF, as well as the monitoring of the AIF`s compliance with its investment policy. The depositary is required to hold the AIF`s assets in custody and to ensure that they are properly accounted for.
The depositary agreement sets out the terms and conditions of the relationship between the AIF and its depositary. It outlines the specific duties and responsibilities of the depositary, including its obligations to:
1. Hold and safekeep the AIF`s assets. The depositary must ensure that the assets of the AIF are properly accounted for and held in safe custody.
2. Monitor the AIF`s compliance with its investment policy. The depositary must ensure that the AIF is investing in accordance with its stated investment policy and that it is not taking unnecessary risks.
3. Provide oversight of the AIF`s service providers. The depositary must monitor the activities of the AIF`s service providers, including its investment manager, to ensure that they are fulfilling their obligations to the AIF.
4. Perform other duties as agreed between the AIF and the depositary. The depositary may be required to perform other duties, such as preparing reports or providing information to the AIF`s investors.
The depositary agreement also sets out the fees and expenses that the depositary is entitled to receive for its services. These fees are typically based on a percentage of the AIF`s assets under custody.
In conclusion, the depositary agreement is an important document that helps to protect the assets of an AIF and ensure that they are being managed in accordance with the AIF`s investment policy. It is important for both the AIF and the depositary to carefully review the terms and conditions of the agreement and ensure that they are comfortable with their respective roles and responsibilities. As a professional, it is important to use keywords such as “depositary agreement AIF” to improve the search engine visibility of the article.
