(40)Some concentrated markets lack a competitive supply of depositary services. To address that shortage, which can lead to increased costs for AIFMs and a less efficient market for AIFs, Member States should be able to permit their competent authorities to allow the appointment of a depositary established in another Member State. That possibility should only be used when the conditions laid down in this Directive are fulfilled and with the prior approval of the competent authorities of the AIF. Since the decision to allow the appointment of a depositary established in another Member State should not be automatic, even when those conditions are fulfilled, the competent authorities should take that decision only after carrying out a case-by-case assessment of the lack of relevant depositary services in the home Member State of the AIF having regard to the investment strategy of that AIF.