The Depositary’s tasks are based on the aim that the investor’s interests shall be guarded, as follows:
- Monitoring all relevant cash flows;
- Checking availability of proper legal title to fund assets;
- Checking that the management of the relevant AIF is in accordance with the agreements reached with the investors (prospectus) and that the manager is generally acting in the best interest of the investors.
Of these tasks, cash flow monitoring requires by far most of the work. Please refer to https://teslincs.nl/en/depositary/moneymonitor/ for further detail. Depositary makes a thorough analysis of the organization of the AIF Manager. Before the Depositary can start, a handbook has to be compiled containing all relevant procedures including escalation in case certain transactions, operations, cash-flows etc. appear to be non-compatible in the context of the agreement of general interest of the investors.
On a quarterly or halfyearly basis TCS Depositary sends reports to the manager for each individual fund. These reports summarize activies of the fund in the reporting period and either confirm that no remarks or findings are made or will bring forward one or more remarks. ‘Findings’ are more serious shortcomings and will immediately be reported once found.
TCS Depositary has received a license to operate as an AIFMD depositary from the Authority Financial Markets in 2018.