On 23 August 2017 the Financial Services Division of the Cayman Islands (Justice Andrew J Jones QC) delivered the landmark judgment in Primeo Fund v HSSL in which findings of breach of contract, negligence and gross negligence were made against the custodian and administrator of the fund in the face of arguments by them that they had implemented standard commercial practices.
This article looks at how the approach to the custodian’s liability in Primeo compares to the approach under the Alternative Investment Fund Managers Directive depositary liability (AIFMD) and considers whether Jones J’s decision in Primeo held the custodian of the fund to a higher or lower standard of liability than would generally apply under the AIFMD.
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