ESMA guidelines in respect of performance fees in UCITS and certain types of AIFs
16 November 2020
On 5 November 2020, European Securities and Markets Authority (ESMA) published the official translations of its final report on guidelines regarding performance fees in UCITS and certain types of AIFs. The purpose of the guidelines is to establish a common standard in relation to the disclosure of performance fees to investors in UCITS and retail investors in certain types of AIFs.
Fund managers should carefully review the guidelines and their performance fee models to assess the potential changes needed in order to ensure timely compliance with the guidelines.