On 1 October 2024, Baker McKenzie Luxembourg held its first DepoBank Day event bringing together over 120 market stakeholders, including the regulator, heads of depositary services, and bank and custody experts, to engage in meaningful discussions about custody and fund depositary laws and the essential duties and liabilities of depository banks.
Laurent Fessmann, Investment Funds leader at Baker McKenzie Luxembourg and the event's host , kicked off the conference by quoting the words of the official EU Commission spokespersons in the aftermath of the 2010 financial crisis:
Too many failures, too many negligence were committed, YOU (depositaries) are the stakeholders which have to take back control over the funds operating processes. YOU (depositaries) are the servicing providers which are able to restore investor confidence.
This half-day semina r provided a valuable platform to learn more about the state of the ongoing supervision applied by the Commission de Surveillance du Secteur Financier and the fact findings gathered following on-site inspections. The regulator was also questioned on a recent public release relating to the ex ante controls for depositaries. ABBL gave a presentation on its new guidance paper on the depositary look-through duties, and ALFI presented the post trade reduced settlement cycle (T+1). Heads of custody and depositary services had the opportunity to expand on their daily duties, liabilities and practical challenges.
With its impressive lineup of senior and expert speakers from depositary and global custodians and the thought-provoking discussions, DepoBank Day offered a unique opportunity for Luxembourg depositaries to connect, collaborate and learn from each other.
Given the success of the event, there is a greater likelihood that Baker McKenzie may decide to continue this expert dialogue session during a second edition next year.