# Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance), Article 86: Monitoring of the AIF’s cash flows

Extent: E+W+S+N.I.

A depositary shall ensure effective and proper monitoring of the AIF’s cash flows and in particular it shall at least:
(a)ensure that all cash of the AIF is booked in accounts opened with entities referred to in paragraphs (1), (2) and (3) of rule 7.13.3 of the Client Assets sourcebook in the relevant markets where cash accounts are required for the purposes of the AIF’s operations and which are subject to prudential regulation and supervision that has the same effect as the law applicable in the United Kingdom, or in any part of the United Kingdom, is effectively enforced and is in accordance with the principles laid down in rules 6.2.2R, 6.3.4A-1R, 6.6.2R, 6.6.3, 6.6.34, 7.13.12, 7.15.3 and 7.15.20 of the Client Assets sourcebook (so far as relevant);
(b)implement effective and proper procedures to reconcile all cash flow movements and perform such reconciliations on a daily basis or, in case of infrequent cash movements, when such cash flow movements occur;
(c)implement appropriate procedures to identify at the close of business day significant cash flows and in particular those which could be inconsistent with the AIF’s operations;
(d)review periodically the adequacy of those procedures including through a full review of the reconciliation process at least once a year and ensuring that the cash accounts opened in the name of the AIF, in the name of the AIFM acting on behalf of the AIF or in the name of the depositary acting on behalf of the AIF are included in the reconciliation process;
(e)monitor on an ongoing basis the outcomes of the reconciliations and actions taken as a result of any discrepancies identified by the reconciliation procedures and notify the AIFM if an irregularity has not been rectified without undue delay and also the FCA if the situation cannot be clarified and, as the case may be, or corrected;
(f)check the consistency of its own records of cash positions with those of the AIFM. The AIFM shall ensure that all instructions and information related to a cash account opened with a third party are sent to the depositary, so that the depositary is able to perform its own reconciliation procedure.

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Source: https://www.legislation.gov.uk/eur/2013/231/article/86 (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-231/article-86
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.