Bedell Trust authorised to provide depositary services from Jersey

23 Jun 2014

Bedell has received regulatory approval from the Jersey Financial Services Commission (the "JFSC") to provide depositary services from its Jersey office to all JFSC regulatory categories of investment funds, provided that the particular fund is either a closed-ended private equity fund (including a closed-ended infrastructure fund having the characteristics typical of a private equity fund) or a closed-ended real estate fund.

The depositary service offering delivered from Jersey currently presents an attractive proposition to:

a) Non-EU AIFMs marketing Alternative Investment Funds ("AIFs") to investors in the EU pursuant to Member States' national private placement regimes under Article 42 of the AIFMD and which, as a result of additional requirements for marketing into certain EU countries (e.g. Denmark and Germany), are required to appoint one or more entities to provide "depositary-lite" services to those AIFs; and

b) EU AIFMs marketing non-EU AIFs (or feeder AIFs where the master AIF is a non-EU AIF), to investors in the EU under Article 36 of the AIFMD and which are required by the AIFMD to appoint one or more entities to provide "depositary-lite" services to those AIFs.

As the role and responsibility of the depositary is prescriptively set out in the AIFMD, there should be no difference in the service offering of depositaries from jurisdiction to jurisdiction. However, where there are options available in relation to the location of the depositary, such as the location of the entity selected to provide "depositary-lite" services as outlined above, there will be cost savings in appointing a depositary which is based in a lower VAT or VAT-free jurisdiction such as Jersey, where depositary fees will be net of, for example, VAT chargeable in the UK.

As a leading independent provider of fund, trust and corporate services, with over GBP 25bn of client assets under administration, Bedell has been servicing the needs of AIFMs for over 20 years.  Bedell's experienced professionals present a flexible and consultative approach to deliver bespoke, efficient and cost-effective solutions to boutique private equity, real estate and infrastructure fund managers, as well as some of the world's largest financial institutions. To complement our existing fund administration offering, we are very pleased to provide client-tailored depositary services as a stand-alone service or as an add-on to our existing corporate and fund administration offering.  
We have a deep understanding of the needs of AIFMs and have developed the expertise, technology and infrastructure to assist in ensuring that funds are compliant with the AIFMD, while streamlining the costs of regulatory oversight and compliance.

Bedell's London office is also shortly expecting to receive its variation of permission approval from the FCA to deliver depositary services to clients in the UK.

For further information about depositary services at Bedell, please contact Philip Bolton.

Key contacts
Executive Director - Alternative Investments, Europe