The depositary and the AIFM (Alternative Investment Fund Manager) are separate entities. The depository acts as a supervisor for the AIFM, with the following key responsibilities:
Oversight: The depository monitors the AIFM to ensure they perform their duties correctly according to AIFMD regulations. This involves due diligence on the AIFM and ongoing interaction.
Issue escalation and reporting: If the AIFM makes a mistake, the depository is responsible for addressing it, resolving the issue, and reporting it to investors.