Cash flow monitoring for AIFMD Level 2 requirements

DIAMOS CashMonitoring

More than a good nose for AIFMD cash flow requirements.

The European Alternative Investment Fund Managers Directive (AIFMD) includes increasing cash flow control requirements for depositories / custodians.

One of the many obligations depositories have to fulfill is the "Monitoring of the AIF´s cash flows".
The AIFMD Level 2 Regulation clearly requires the depository

  • to reconcile all cash flow movements on a daily basis,
  • to compare own records of cash positions to those of the AIFM.

Whether the accounts – cash and collection – are held with third parties or not – the depository needs to review its reconciliation procedure periodically and make sure all accounts – including the newly opened ones – are reconciled.

Besides the reconciliation part, the AIFMD Level II Regulation goes further and requires:

  • The due diligence of the cash accounts used by or on behalf of the AIF
  • The identification of significant cash flows by close of business day,
  • The reporting of all identified irregularities which are not “rectified without undue delay” to the AIFM, the auditors and to the competent authorities.

Additional information on the cash flow monitoring requirements can be found within the "Questions and Answers (Q&A)" document of the European Securities and Markets Authority (ESMA),
in particular within the updated version from July 18th 2014 (see chapter "Depositaries", page 14 / 15,
questions 1, 2, 3, 5, 7): ESMA Questions and Answers (Q&A) update on the application of the AIFMD (pdf)

DIAMOS CashMonitoring is our smart solution for depositories to track all relevant aspects of
AIFMD Level 2 Regulation concerning cash flow monitoring.

For more details please have a look at our information brochure: DIAMOS CashMonitoring (PDF)

Do you have any additional questions and want to learn more about our solution?

We look forward to your request.

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DIAMOS CashMonitoring: Additional Information (PDF)

DIAMOS CashMonitoring

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