# kaal:claim:1806252-019

**Claim.** Because the AIFM Directive exposes depositaries to strict liability in certain circumstances, depositaries must weigh the risks and benefits of serving EU alternative investment funds, and a negative assessment would harm the depository business and, implicitly, hedge funds.

**Type.** mechanism  **Support.** argued

**Holds when.**

- AIFM Directive retains elements of strict depositary liability
- depositaries reassess whether to serve alternative investment funds in the European Union

**Source quote.**

> If this risk assessment turns out negative, the business of depositories and, implicitly, hedge funds could be affected.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), III.1.c Impact Assessment, page 22

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Failure mode.** depositary-withdrawal  (family: other)

**Topics.** law-and-legal-systems, private-funds

**Keywords.** aifm-directive, depositary-liability, hedge-funds, unintended-consequences

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.