Main Tasks

In order to carry out the three main tasks as Depositary, enquiries are made into the administrative organization of the Manager of the Alternative Investment Fund (AIF). The Depositary in question will adapt its AO/IC handbook according to each AIF for which it acts in this role to the specific characteristics of that AIF. The main tasks are carried out going by this handbook.

The cash flows are monitored online and are examined on the basis of what was described during the enquiry phase as suitable for the normal run of events. There is also inspection of all payments made and received whether they can be reconciled. Unaccountable or apparently inaccurate payments are marked out and have to be clarified by the Manager.

The Depositary has to have a picture of the completeness of legal title in relation to the assets that the AIF accumulates. This could differ according to the jurisdiction and ‘asset class’. The Depositary forms a picture of the quality of the documentation, its completeness, and whether all conditions have been met before an investment is entered into. Also, the quality of the relative legal support is an object of attention.

Finally, the Depositary oversees that the Manager meets all obligations set out in the prospectus and in other agreements with the investors. This involves a range of aspects of the control function. Often these involve risk spreading; e.g. risk of excessive focus on specific sectors, land, currencies etc. Also, agreements concerning the Manager’s set up, expenses and management fees are inspected as to their implementation.

The supervisory role of the Depositary is an ongoing process. Random checks are not enough. Any revelations that cannot be explained directly are put before the Manager. According to an entrenched process ,the escalation procedure, any anomaly is put step by step through the various stages before the Manager, the Board of Supervisory Directors or Investors Committee and finally before the AFM. The escalation is halted of course if a satisfactory explanation is found.

The Depositary works in principle on the basis of hourly rates. Once collaboration with the fund manager is established and where necessary approved by the AFM, a fixed fee can more easily be agreed upon. During the run-up stage fees are generally charged on the basis of actual hours worked.

TCS Funds

TCS Funds

TCS Fund & Family provides services to enterprising investors in various fields of activity and groups of investors who invest jointly. TCS Fund & Family takes care of the ...

TCS Depositary

TCS Depositary

TCS Depositary acts as Warden or Depositary for managers of alternative investments (not shares) including investment funds that come under the AIFMD. This involves investments in ...

TCS Family & Charity

TCS Family & Charity

TCS Charity provides services to the board of several ANBI’s and other charitable organizations. Very often the work involved with the organization is too much to handle for the ...

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