The Depositary makes a thorough analysis of the organization of the AIF Manager. What agreements have been reached with the investors? What are the risks? How is the prevention of conflicting interests within the Manager’s set-up set out? What procedures are followed? How is the administrative set-up organized? How do the cash-flows run? And so on.
Before the Depositary can start with its actual tasks a handbook has to be compiled in which the procedures are set out, what the Depositary’s tasks will consist of, and how frequently these tasks should be carried out. Also laid down in the handbook will be the escalation procedures to be followed in cases where certain transactions, operations, cash-flows etc. appear to be non-compatible in the context of the agreement.
The handbook forms part of the assessment of the fund by the AFM in connection with the licence application.
The handbook is compiled by the relevant ‘Depositary’ in conjunction with the Manager and reflects the organization and the procedures of the Manager’s set-up. It will have to be regularly updated in consultation with the Manager.