Custodians get 'force majeure' clause added to AIFM draft

Lobbying by global custodians has succeeded in adding a clause on force majeure to the draft European Union directive on alternative investment fund managers (AIFM). This means custodians and sub-custodians will not be liable for clients' assets in events beyond their control like political problems, such as the collapse of a country's government or an unforeseeable change in currency. "We have managed to carve out an exception, and that has been extremely helpful," says one regulator…