Last Updated on June 3, 2025 by Arnaud Collignon
Launch of the 2024 ESMA Data Collection on Costs Linked to Investments in AIFs and UCITS
The European Securities and Markets Authority (ESMA) has officially announced the commencement of its 2024 data collection initiative focusing on the costs associated with investments in Alternative Investment Funds (AIFs) and Undertakings for Collective Investment in Transferable Securities (UCITS). This initiative aims to enhance transparency and provide investors with critical information regarding the costs they incur when investing in these financial products.
Key Objectives of the Data Collection
- Transparency: To provide clearer insights into the costs associated with AIFs and UCITS.
- Investor Protection: To ensure that investors are well-informed about the expenses related to their investments.
- Regulatory Compliance: To assist asset managers in meeting regulatory requirements regarding cost disclosures.
What This Means for Investors
Investors can expect to see a more detailed breakdown of costs, which will include:
- Management fees
- Performance fees
- Transaction costs
- Other operational expenses
This increased transparency is designed to empower investors, allowing them to make more informed decisions based on a comprehensive understanding of the costs involved.
Participation and Reporting
Asset managers and investment firms are encouraged to participate in this data collection process. They will be required to report detailed cost information, which will be aggregated and analyzed by ESMA. This data will ultimately contribute to a broader understanding of the cost landscape in the investment sector.
Next Steps
All stakeholders are urged to prepare for the upcoming reporting period. The data collection will commence shortly, and firms should ensure they have the necessary systems in place to comply with the reporting requirements.