EU Wants Fund Depositories To Be Liable For Client Assets

Law360, New York (November 17, 2011, 12:45 PM EST) -- A European Union regulatory body said Wednesday that depositories safeguarding alternative investment fund customers' assets should be held liable if those assets are lost, an issue that has gained attention since the collapse of commodity and futures broker MF Global Holdings Ltd.

The recommendation was put forth in a 500-page report by the European Securities and Markets Authority recommending rules to govern alternative investment funds, including hedge funds and private equity funds, as required under the EU's new Alternative Investment Fund Managers directive, which the European...
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