Regulatory AlertsRegistration of authorised fund assets
The Financial Conduct Authority (FCA) proposes rule changes to address the reluctance of depositaries of authorised Alternative Investment Funds (AIFs) to hold legal title for private market assets like real estate and partnerships, which currently limits these funds' investment capabilities. The FCA intends to permit depositaries of full-scope AIFMs to delegate their COLL registration function for non-safe custody/AIF custodial assets to an AFM's affiliate and to delegate custody for certain safe custody investments to regulated third parties. These proposals aim to preserve authorised AIFs' ability to invest in private markets while maintaining investor protection, alongside clarifying CASS 6 custody rules and aligning COLL registration requirements for different AIFMs.