On 16 July 2019, ESMA launched a public consultation on draft guidelines for
performance fees in undertakings for UCITS
("Guidelines"). ESMA also asks whether the Guidelines
should also apply to alternative investment funds marketed to
retail investors. ESMA invites feedback by 31 October 2019.
The Guidelines aim to harmonise across the EU the way in which
performance fees can be charged to UCITS while ensuring common
standards of disclosure by setting out five key elements to promote
supervisory convergence in the following areas:
• General principles on performance fee calculation
methods;
• Consistency between the performance model and the
fund's investment objectives, strategy and policy;
