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Clearstream’s “Domestic Markets Monitoring Report” will support depositary banks in managing their new obligations as stipulated by regulations such as the Alternative Investment Fund Manager Directive (AIFMD). AIFMD will enter into force on 22 July 2014, imposing tight restrictions on the regulation and supervision of AIFMs to ensure greater market transparency and increased investor protection. The directive directly affects depositary banks offering custody services on behalf of alternative investment funds. These institutions will be required to provide a general oversight of the fund’s investment activities to keep custody risk in a market or a sub-custodian under control. In the event of a loss of financial instruments, depositary banks will be liable for restitution...
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