Kinetic Partners Offers AIFMD Hedge Fund Depositary Due Diligence (DD) Checklist

services firm Kinetic Partners has published guidance on compliance with the
Alternative Investment Fund Managers Directive (AIFMD).

The firm adds that hedge fund managers will need to undertake
due-diligence over their depositary providers and the ‘AIFMD Hedge Fund DD checklist’ has been designed to assist
managers undertake the necessary depositary due diligence.

European Union [EU] hedge fund managers will need to comply with AIFMD and
there are differing requirements for appointing depositories,” said Andrew Shrimpton, global head of regulatory compliance, at
Kinetic Partners. “The exact requirements will depend on a combination
of the domicile of the managers, their hedge funds and how they are being
marketed. We hope this checklist can assist managers in this area.”

The checklist covers eight key areas: regulatory authorisation;
financial strength; general matters; operating model; on-boarding; costs; legal
terms; and future developments.

managers will need to provide a summary of the due diligence undertaken in
their Full Scope AIFMD Variation of Permission applications to the Financial
Conduct Authority (FCA), and be in a position to share further details of the
due diligence undertaken on request by the FCA.

A free copy of the checklist is available at by clicking on the AIFMD section.


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