Last Updated on June 3, 2025 by Arnaud Collignon
Launch of the ESMA Common Supervisory Action on UCITS Costs and Fees
The European Securities and Markets Authority (ESMA) has initiated a Common Supervisory Action (CSA) aimed at enhancing the supervision of costs and fees associated with Undertakings for Collective Investment in Transferable Securities (UCITS). This initiative underscores the commitment of ESMA and national competent authorities to ensure that investors are treated fairly and transparently in the investment landscape.
Objectives of the Common Supervisory Action
The primary objectives of the CSA include:
- Improving transparency regarding costs and fees charged to investors.
- Ensuring compliance with regulatory requirements related to cost disclosures.
- Promoting investor protection by ensuring that costs do not erode investment returns.
Key Focus Areas
During this supervisory action, the following areas will be closely examined:
- Assessment of the adequacy and clarity of cost disclosures provided to investors.
- Evaluation of the reasonableness of fees charged in relation to the services provided.
- Review of the effectiveness of internal controls and governance frameworks in place to manage costs.
Timeline and Implementation
The CSA will be conducted over the course of 2021, with findings expected to be published in early 2022. This timeline allows for a thorough examination of practices across various jurisdictions.
Conclusion
As the investment landscape continues to evolve, the ESMA Common Supervisory Action represents a proactive step towards enhancing investor confidence and ensuring that costs and fees are managed effectively. Stakeholders are encouraged to stay informed and engaged with the developments stemming from this initiative.
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