Cesr cautious on full guarantees for assets

Article reports that European regulators are wary of making depository banks looking after Ucits assets liable for losses due to the failure of a sub-custodian. Responding to a European Commission consultation on Ucits depositaries, the Committee of European Securities Regulators proposes a much greater degree of control over the delegation of custody functions to a sub-custodian, but is not in favour of depositaries offering full guarantees.

ESO: Background information: Depositary banks in protest over EU plans http://www.europeansources.info/record/depositary-banks-in-protest-over-eu-plans/

European Commission: DG Internal Market and Services: Single Market for Services: Financial Services: Investment Funds http://ec.europa.eu/finance/investment/index_en.htm

CESR, September 2009: CESR responds to the Commission’s consultation on the UCITS depositary function http://www.cesr.eu/popup2.php?id=6064

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