Regulatory Alerts2024-04-25
FMA Minimum Standards for Drawing up a Contingency Plan for a Potential Change of Custodian Bank or Depositary
The Austrian Financial Market Authority issued these minimum standards to guide asset managers, including management companies and AIFMs, in preparing contingency plans for the potential replacement of their custodian banks or depositaries. The document mandates that these plans outline immediate measures and pre-established communication channels to ensure a smooth transition of assets in the event of a custodian's financial difficulties or insolvency. It further requires asset managers to regularly review potential successors and subject their contingency plans to annual internal audit to mitigate risks to investors and the financial system.
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