On 12 July 2018, the European Commission published:
- Delegated Regulation amending Commission Delegated Regulation (EU) No. 231/2013 with regard to the safekeeping duties of depositaries; and
- Delegated Regulation amending Commission Delegated Regulation (EU) No. 2016/438 with regard to the safekeeping duties of depositaries.
Both Delegated Regulations clarify that assets of UCITS, alternative investment funds and other clients can be commingled at the level of the first custodian provided that they are initially held by the same depositary (or are initially held by the same custodian where the latter further delegates the custody of assets down the custody chain).
The next step is for the Delegated Regulations to be considered by the European Parliament and the Council of the EU.