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.
Applicants should submit an application pack with all relevant documents. We will not consider an application complete if there are any outstanding documents.
The application pack must consist of:
- Application Fee;
- Application Form;
- Financial Projections for the next 3 years
- Stress Test on Financial Projections;
- Profit and Loss account;
- Balance Sheet;
- Regulated Individual Form (for each Regulated Individual);
- Non-Executive Director Form (for each non-executive director);
- Controller Form (for each Controller);
- Business Plan;
- Risk methodology and framework
- Supporting Policies and Procedures
- Details of Source of Wealth/Source of Funds (including final ownership structure, details of capital within the group, how the funding will be provided, access to further funds and 3-year financial statements for companies providing the funding. If an individual will provide more than 10% of the funding, we will require an independently verified statement of wealth);
- Busines Continuity Plan; and
- Any other document the applicant considers the GFSC should take into consideration as part of the application.
Please request cloud access from the Authorisation team in order to submit the application pack. Requests should be sent via E-mail to email@example.com with the following information in the subject field: ‘Name of Regulated Firm/Applicant – Application’. Paper copies are not required unless indicated by the Authorisation team.
Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the Regulated Firm’s/Applicant’s domain.
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.
The business plan should include sufficient details relating to:
- The types of funds that will be serviced including details of any specific assets or restrictions that will be applied when selecting the type of AIF to service
- Details of the Mind and Management in Gibraltar
- Risk Management function
- Details of the Corporate Governance arrangements
- Details of outsourcing arrangements and how the firm will ensure oversight over this
- How the firm complies with the Anti-Money Laundering requirements
- How the firm will be structured and staffed
- How the applicant will comply with the depositary requirements introduced via AIFMD
- How AIF cash flows will be monitored
- How will it ensure assets are entrusted for safe-keeping in accordance with the AIFM Regulations
- How oversight of any delegated custody arrangements will be carried out
- The oversight of AIFM activities
- How monitoring will be carried out of the AIF valuation policy, NAV pricing and verification of transfer agency activities
- Reporting obligations in accordance with the AIFM Regulations, both to the AIFM and the GFSC
- Details of how any conflicts of interest between the applicant, AIFM, AIF and investors will be monitored
- Operating model, how the firm will be structured and run.
Firms should consider the AIFMD requirements in their entirety prior to submitting an application.