In Europe, Custodians May Be Forced To Repay Investors For Madoff-Style Losses

Kentouris, Chris
August 2009
Securities Industry News;8/17/2009, Vol. 21 Issue 18, p1
Trade Publication
The article reports on the plan of the European Commission (EC) to hold European depositary banks to a higher standard of investor protection by making custodian banks liable for the total value losses suffered by investors through the wrongdoing of processing agents from removed from its oversight. Under a proposed legislation, the EC would have European depositaries responsible for making investors whole for the wrongdoing or bankruptcy of subcustodian banks and prime brokerages. The impetus for the plan of the EC is noted.


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