ESMA · ESMA_QA_1138 Answer Published
KIID Collateral management
- Regulation
- Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
- Topic
- UCITS eligible assets and investment restrictions
- Submitted
- 2016-10-01
- Answered
- 2016-10-01
Question
When there is transfer of title, can the collateral be held by a custodian that is not the depositary of the UCITS?
Answer
[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 6e] Yes, but only if the UCITS’ depositary has delegated the custody of the collateral to a sub-custodian and the depositary remains liable if the collateral is lost by the sub-custodian.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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