European guidelines for managers of alternative investments (not stocks/shares and therefore non-liquidity investments) require the putting in place of a Depositary or Warden. This applies to ‘Alternative Investment Funds’ starting from a sum of €500 million (own funds) and starting from a sum of €100 million if use is made of ‘leverage’ (loans). The Depositary’s tasks are based on the aim that the investor’s interests shall be guarded, as follows:
- supervising all relevant cash flows;
- checking that property deeds exist for all AIF investments;
- checking that management of the relevant AIF is in accordance with the agreements reached with the investors (see prospectus).
TCS Depositary is officially qualified to act as a Depositary as it is supervised by the Nederlandsche Bank (Dutch Central Bank). Such institutes may be appointed by controllers of AIF funds to act as Depositary following the granting of a licence by the Financial Markets Authority in relation to a particular AIF fund.
TeslinCS is highly experienced as a Fund Administrator and so, through practical experience, has the know-how to carry out the related tasks.Thanks to such know-how they are well placed to act in this supervisory capacity.