Thompson Taraz Depositary Limited is a leading ‘Full Scope’ UK depositary and has been providing clients with independent depositary services since the inception of AIFMD in 2013. Thompson Taraz also provides custody services and is a ‘Full Scope’ UK AIFM.

Additional focus has been placed on the Thompson Taraz depositary service offering to add further value to managers in the current regulatory environment and has included the recent appointment of David Price as Head of Development to further complement the senior team alongside Martin Heffernan as CEO and Sarah Hamilton as Head of Depositary and Finance.

Martin Heffernan says “We’ve been providing funds services for 20 years with another decade prior to that spent in audit and accounting so when we looked at the depositary role it was familiar territory to us and a natural fit. It has an awful lot of the auditor approach to it as well as requiring a deep understanding of funds, how they run and what an AIFM does, all of which is in our corporate DNA.”

Martin goes on to say that “Initially, the depositary role was a new one for the whole market and we trained up our team and learned our way through depositary services, generally using the people that were in house as they understand funds and have seen it and done it, so when it comes to reviewing other Fund Managers and checking they are compliant with the requirements they are well placed to carry out the oversight role."

The role of the depositary has evolved since it was introduced under AIFMD and Thompson Taraz is fully aware of the increased scrutiny on the depositary by regulators to ensure investment funds are being monitored effectively and within the regulations. David Price states that “The role of the depositary is changing and we see the evolution of the depositary as not just a regulatory requirement but as a valuable service in providing our clients and investors with the assurance and guidance they require.”

The current COVID-19 situation has meant added focus on fund managers by regulators, particularly within the valuation of assets and how these should be treated under the current circumstances. David Price goes on to say “The FCA has made it perfectly clear that the depositary plays a really important oversight role, especially concerning fund governance and valuation processes. Thompson Taraz does not take a narrow view of this role and we will ensure that a solid valuation process exists, is robust and effective in a meaningful way and not just a tick the box affair."

Sarah Hamilton, responsible for depositary operations confirms that “Thompson Taraz is right at the forefront of the regulatory landscape, we are an affiliate member of the Depositary and Trustee Association and very much a part of the working groups that regularly take place, so if there are any changes or interpretations in regulations we’re very much in touch with those changes as they happen. Sarah goes on to say “in light of the current Covid-19 pandemic, the constant re-assessment of risk is absolutely key to ensure that investors in particular are reassured and the managers have appropriate levels of investor communication to show that risk has been managed. Independence is also key, and it’s important to find a depositary that can provide an independent service that isn’t too inter-linked with other services so that the reporting isn’t conflicted in any way by other activities.”

Thompson Taraz draws on a wealth of accounting, audit and business advisory experience to deliver a depositary service which not only complies with the regulations but as an added value service to a wide range of AIFs and in strategies including Property, Infrastructure, Venture Capital, Private Equity and Sustainable Energy.

Martin Heffernan concludes by saying that “For managers who see the value of the depositary in isolation, a standalone service is key. We understand the value of independence and are strongly focused on compliance and doing things the right way, so they will appreciate a depositary that is a benefit in its own right, that looks to be proactive and add value in their own environment.“