"Radical" EU proposal worries custodians

Global custodians fear they would be liable for clients' assets under the draft European directive for alternative investment fund managers (AIFMs) -- and that could have a radical impact on costs. Some are also concerned about proposed changes to AIFM regulations, which now apply to about €2 trillion of investments, but could be extended to Ucits funds and then further worldwide. "We are monitoring the legal framework, because it really underpins everything we do, and how these reg…