ESMA publishes guidance on performance fees in UCITS and certain AIFs

03 April 2020

Metadata
Provider: 
ESMAESMA
URL: 
https://www.esma.europa.eu/press-news/esma-news/esma-publishes-guidance-performance-fees-in-ucits-and-certain-aifshttps://www.esma.europa.eu/press-news/esma-news/esma-publishes-guidance-performance-fees-in-ucits-and-certain-aifs
Retrieved on: 
Friday, April 3, 2020
Information
Tags: 
Economy, Finance, Money, European Union directives, Investment funds, European Union law, Investment, Undertakings for Collective Investment in Transferable Securities Directive, Investor, Alternative Investment Fund Managers Directive, Mutual fund
Summary
Key Points: 
  • 03 April 2020

    Fund Management

    The European Securities and Markets Authority (ESMA), the EUs securities markets regulator, has published today its final guidance on performance fees in investment funds applicable to Undertakings for the Collective Investment in Transferable Securities (UCITS) and certain types of Alternative Investment Funds (AIFs).

  • ESMAs guidelines aim at harmonising the way fund managers charge performance fees to retail investors, as well as the circumstances in which performance fees can be paid.
  • The common requirements will allow convergence in how NCAs supervise performance fees models and disclosure across the European Union (EU).
  • The guidelines are applicable to both UCITS and certain types of AIFs, in order to ensure a level playing field and a consistent level of protection to retail investors.
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