BBH disappointed burden of proof reversed in AIFMD

Under the alternative investment fund managers directive (AIFMD) do custodians need to adapt to ongoing monitoring of local capital markets, sub-custodians, prime brokers, fund managers and transfer agents?

Sean Tuffy, vice-president, investor services, Brown Brothers Harriman
The depository liability standards in AIFMD represent an improvement from the original proposals. Most importantly, the European Securities and Markets Authority clarification of the definition of loss has helped to reduce a lot of the uncertainty with the new standards. That said, there are issues of concern that will present challenges to the industry. Specifically, the proposals around collateral and the ‘look through’