A corrigendum published by the Council of the European Union on 6 July 2026 corrects errors in the Greek, French, and Dutch language versions of Directive (EU) 2024/927 of 13 March 2024, which amended rules on delegation arrangements, liquidity risk management, and loan origination by alternative investment funds. The correction reverses the meaning of a key provision in those language versions: services provided by a central securities depository (CSD) acting as an investor-CSD are now considered a delegation of the depositary's custody functions, aligning the texts with the intended legal meaning.
The corrigendum applies to Article 1, point 10(c)(ii) (amending Directive 2011/61/EU on alternative investment fund managers) and Article 2, point 8(b) (amending Directive 2009/65/EC on undertakings for collective investment in transferable securities). In the original Greek, French, and Dutch versions, the provision stated that such services were not a delegation; the corrected text now states they are. This change affects all entities applying the directive in those languages, including fund managers, depositaries, and CSDs. Member States have eight days from 6 July 2026 to submit observations to the Council's legal service.
Directive (EU) 2024/927 was adopted on 13 March 2024 as part of a broader EU effort to strengthen the regulatory framework for alternative investment funds, particularly regarding delegation and liquidity risk. The original text in English and other language versions already treated investor-CSD services as delegation; the corrigendum fixes translation errors that had introduced the opposite rule in Greek, French, and Dutch. The correction ensures uniform application across all EU languages, removing a potential loophole where depositaries in those jurisdictions might have avoided custody responsibilities by using investor-CSD services without counting them as delegated functions.
For fund depositaries in Greece, France, and the Netherlands, the correction clarifies their liability for custody functions outsourced to investor-CSDs, increasing compliance obligations. CSDs offering investor-CSD services in those countries now face stricter oversight as delegated entities. Fund managers must review their delegation arrangements to ensure they reflect the corrected rule, potentially requiring renegotiation of contracts. National competent authorities in those member states gain a clearer legal basis for supervision, reducing ambiguity in enforcement.