BNP Paribas Securities Services has won a mandate to provide depositary banking services to Hansa Trust, an equity investment company with an approximate value of GBP280 million.
As part of this mandate, and in accordance with the Alternative Investment Fund Managers Directive (AIFMD), BNP Paribas Securities Services will monitor cash movements within the trust’s funds and provide custody services to keep the trust’s assets safe.
The bank will also perform oversight duties to ensure that management decisions comply with the fund prospectus and any relevant laws and that shareholders’ interests are protected.
Stephen Thomas, chief financial officer at Hansa Capital Partners, says: “From a very early stage in the implementation of AIFMD in the UK, BNP Paribas recognised the impact the directive would have on the investment trust industry and planned for the timely introduction of depositary services to its clients. At the same time, the bank kept us up to date with UK regulators’ developing requirements, assisting us with our planning requirements.
“We have greatly benefited from BNP Paribas’ forward thinking and the pragmatism they have shown throughout the process. This has enabled us to become fully compliant more than one month prior to the AIFMD deadline."
Linda Morsia, head of UK trustee and depositary services at BNP Paribas Securities Services, says: “AIFMD brings about significant changes for market participants running alternative investment strategies. For investment trusts such as Hansa, an important part of implementing the directive was to clarify the respective roles of depositary banks and investment trust boards to avoid duplication. We are delighted to be working with Hansa Trust.”
