The Financial Conduct Authority (FCA) has granted INDOS Financial Limited authorization to become the first independent UK-authorized depositary specializing in hedge funds. The FCA granted an Article 36 Custodian to the company, which will allow the company to provide AIFMD depositary-lite services to non-EU alternative investment funds.
Stemming from the implementation of AIFMD, many hedge fund managers are required to comply with a “depository-lite” regime, which requires managers to identify depository providers, such as INDOS, in order to continue marketing their funds to EU investors after July 22, 2014.
Bill Prew, Founder and CEO of INDOS told Hedge Week, “Being the first independent firm to obtain an Article 36 Custodian authorization is a major achievement and comes at a very important time. Many hedge fund managers are working towards submission of their AIFMD application for authorization to the FCA. Our authorization will enable prospective clients to identify with INDOS in their application with confidence.” Prew also indicated that with the Article 36 Custodian, he is confident that many hedge fund managers will “follow the path to independent, flexible and transparent approach.”
Read more from Hedge Week here.