Book II: Products

In their respective roles, the portfolio management company and the custodian shall act honestly, fairly, professionally, independently and in the best interests of the AIF and the unitholders or shareholders of the AIF.

The AIF or its management company shall ensure that a single custodian is appointed. Under the conditions laid down in the General Regulations of the Autorité des marchés financiers, the appointment of the custodian shall be evidenced by a written contract. This contract shall in particular define the information required to enable the custodian to fulfil its duties.

The custodian is chosen from a list of entities drawn up by the Minister responsible for the economy. AIF custodians may delegate their duties under the conditions laid down in the general regulations of the Autorité des marchés financiers.

To avoid conflicts of interest between the depositary, the management company, the AIF and its unit-holders or shareholders: 1° The AIF or its management company does not act as depositary ; 2° A principal broker acting as counterparty to the AIF may not be its depositary unless it has functionally and hierarchically separated the performance of its depositary duties from its principal broker duties and potential conflicts of interest are…

An AIF established in France designates a depositary with its registered office or branch in France. Where the AIF is established in a third country and its management company is authorised by the Autorité des marchés financiers, the depositary may be established in France or in the home country of the AIF. When the AIF is established in a third country and its reference Member State is France, its depositary…

I. – In accordance with the conditions laid down in the General Regulations of the Autorité des marchés financiers, the custodian shall ensure that : 1° That all payments made by or on behalf of unitholders or shareholders when subscribing to AIF units or shares have been received and that all cash has been accounted for ; 2° And generally that the AIF’s cash flows are properly monitored. II. –…

The custodian may not delegate to third parties the functions conferred upon it by I and III of article L. 214-24-8. The custodian may delegate asset safekeeping functions to third parties under the conditions laid down in the General Regulations of the Autorité des marchés financiers.

I. – The AIF’s custodian is liable to the AIF or to the unitholders or shareholders for the loss by the custodian, or by a third party to whom custody has been delegated, of financial instruments held in custody in accordance with II of article L. 214-24-8. In the event of the loss of financial instruments held in safekeeping, the custodian shall return to the AIF financial instruments, including money…