Since late 2015, contradictory regulatory messages have been issued on the extent to which CSD participants are expected to offer segregated accounts to their clients at CSD level. The European Securities Markets Authority (ESMA) has been working on this issue throughout 2016. ECSDA took part in several discussions on the issue, including by publishing a response to the ESMA call for evidence on segregation and custody services on 23 September.
CSDs are particularly concerned about overlapping and inconsistent requirements between the CSD Regulation and asset management legislation (AIFMD and UCITS). Up to now, asset management legislation was not deemed to apply to CSDs and a change of approach could have considerable detrimental consequences for cross-border CSD links, without any real benefits in terms of investor protection.
ECSDA therefore continues to defend the view that CSD services already authorised under the CSDR should be subject to AIFMD or UCITS rules.