Ethics and governance in the European Financial centers

The ALFI has today published the Interim report of the ALFI Madoff Task Force in Luxembourg and technical guidelines for Fund of Funds concerning the valuation of investment Funds affected by Madoff.

The report states that Lxembourg legislation on fund depositaries faithfully reflects the provisions of European Council Directive 85/611/EEC (the UCITS Directive) and that Luxembourg has a suitable framework for a proper protection of investment fund assets and investors in line with European standards. The Luxembourg legal and regulatory environment is equivalent to that of the other major European jurisdictions.ynop
This statement does nor comply with the synoptic table of the UCTIS directive and the luxembourg legislation.

The reports states that the group wishes to issue practical industry guidance on the due skills, care and diligence (initial as well as ongoing) a depositary should apply when entering into a relationship with third parties. This means that the current texts are not clear enough or rather may create opportunities for drifts.

If I were the ALFI I would investigate WHO introduced Madoff in Luxembourg despite "red flags".


Report
Technical guidelines