INDOS Financial Limited, a UK independent depositary, says it has received approval from the Financial Conduct Authority to extend its Alternative Investment Fund Manager Directive (AIFMD) depositary permissions to become a full depositary.
INDOS says the permissions build upon the firm's successful depositary-lite business servicing non-European Union funds as well as its UK private equity, real estate and debt fund business. In less than three years this business has grown to comprise 70 funds across 56 managers and US$14bn of assets. The extended permissions will enable INDOS to act for a broader range of UK-domiciled funds such as the UK investment trust market much of which has traditionally been served by banking groups providing a bundled service of depositary, custody and fund administration.
Bill Prew, Chief Executive Officer of INDOS Financial, commented: “As a specialist independent depositary, becoming a full depositary was a natural extension for the business. Our growth to date highlights demand across the industry for depositary services that are independent from other service providers to the fund. We have responded to a clear gap in the UK alternative funds market for an independent depositary that has a full suite of regulatory permissions and the flexibility to act for a diverse range of funds.
"We have already won our first full depositary mandate in the UK and expect several more to follow over the coming months. The timing of the authorisation also positions us to capitalize from depositary provider changes we expect to occur due to the AIFMD depositary derogation, whereby UK funds using non-UK depositaries will need to appoint a UK depositary, coming to an end in July 2017."