Applying for a permission

Alternative Investment Fund Depositary (AIF Depositary)

About

The purpose of this page is to help ensure that the application process is fully understood.

This section sets out:

• What an AIF Depositary is and what this regulated activity would allow you to do

• Authorisation Process

• Capital Requirements

• Additional Information

What is an AIF Depositary and what would this authorisation allow you to do?

An AIF Depositary provides depositary services to Alternative Investment Funds (AIF), and are charged with protecting the investors in each Alternative Investment Fund. An AIF Depositary can act for an AIF with an In-Scope AIFM and/or a Small Scheme Manager.

The depositary has three major roles:

• to safe keep assets of the AIF;

• monitor cash; and

• oversee Net Asset Value (NAV) calculation and fund administration.

In order to act as a depositary under the Alternative Investment Fund Managers Directive (AIFMD), the depositary must be one of the following:

• an EU credit institution (e.g. an EU bank).

• an investment firm authorised under the Markets in Financial Instruments Directive (MiFID).

• a prudentially regulated and supervised institution that is eligible to be a UCITS depositary under Article 23(3) of the UCITS Directive.

 

Application process

Following successful completion of the pre-application process, applicants should submit an application in line with the Staged Application for Authorisation Approach.

Initially, the applicant will only submit the Stage 1 application information - it is important that only Stage 1 information is provided at the outset of the application process.

The GFSC will communicate to the applicant that the application can progress to the next stage once the GFSC is satisfied with the content provided at the current stage. The applicant will then be invited to submit the further information required at the next stage of the application process.

Please request cloud access from the GFSC to submit the information requested, via e-mail to [email protected], stating in the subject field: ‘Name of Applicant – Application’.  Paper copies are not required unless indicated by the team.

Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the Regulated Firm /Applicant’s domain.  

Stage 1 - Business Model, Capital & Key Individuals

The following is to be submitted for Stage 1: 

On receipt of the application fee and Stage 1 documents, the GFSC will confirm the GFSC Supervisor who has been assigned to assess the application for authorisation.

Any missing or additional sector-specific documents and/or information required by the GFSC to complete Stage 1 will be communicated to the applicant during Stage 1.

When the GFSC is satisfied with all the responses and information/documentation received, the GFSC will inform the applicant that its application can progress to Stage 2.  

Stage 2 - Risk Management, IT Systems, Corporate Governance & Financial Crime

The following is to be submitted for Stage 2: 

  • Stage 2 of the General Comprehensive Business Plan (not including Stage 3);
  • Documentation and information including, but not limited to:
    • Corporate Governance and control
    • Business Continuity Management Plan
    • IT infrastructure, Cyber and systems including outsourcing arrangements
    • Operational & Outsourcing Risk including material outsourcing arrangements
    • Systems controls & Risk Management
    • Financial Crime controls, compliance with Anti-Money Laundering/Combating the Financing of Terrorism requirements (as applicable)
    • Risk Methodology and framework policy documents
    • Risk Register & controls
    • Disaster Recovery Plan 
    • Updated business plan, if required.

Any missing or additional sector-specific documents and/or information required by the GFSC to complete Stage 2 will be communicated to the applicant during Stage 2.

When the GFSC is satisfied with all the responses and information/documentation received from an applicant, the GFSC will inform the applicant that its application can progress to Stage 3.

Stage 3 - Conduct of Business, Non-Financial Resource, Policies & Procedures

The following is to be submitted for Stage 3: 

  • Stage 3 of the General Comprehensive Business Plan;
  • Documentation and information including, but not limited to:
    • Non-financial resources
    • Compliance structure
    • Conduct of Business (Full Conduct Risk Framework documents)
    • Detail of KPIs
    • Consumer Duty compliance (as applicable)
    • Operational Resilience compliance (as applicable)
    • Remuneration Policy 
    • Conflict of Interest Policy
    • Conflict of Interest Register
    • Liquidity/solvency policies 
    • Internal Audit Plan 
    • Complaints Handling Policy 
    • Terms of Reference of the Board, Board sub-committees, Risk Committee and/or Audit Committee, Underwriting/Pricing committees, as applicable 
    • Audit, accounting, and banking arrangements 
    • Professional Indemnity Insurance 
    • Contracts with parties to whom material operational functions are outsourced 
    • Completed and signed Regulated Individual Forms and Non-Executive Director Forms
    • Mobilisation Plan (if applicable).

When the GFSC is satisfied with the Stage 3 responses and information, the application will move to a GFSC decision for authorisation.

Capital requirements

An AIFMD's minimum initial and ongoing capital requirements are €730,000. However in the case of a credit institution or investment firm the higher of the capital requirements for those specific regulated activities will apply.

Firms may be required to hold the aggregate of the capital required for each permission prior to being authorised to conduct the proposed activity, and maintain this amount on an ongoing basis. In these cases, we will consider the level of capital. Please discuss this with us ahead of your application.