ESMA Issues UCITS Share Class Discussion Paper – Currency Hedging Endorsed

On 6 April 2016, ESMA issued a discussion paper on UCITS share classes (ESMA/2016/570, the "Discussion Paper"). This contains a range of proposals that are now subject to consultation – with a closing date for feedback of 6 June 2016.  It follows an earlier discussion paper issued in December 2014 on the subject (ESMA/2014/1577).

Key proposals

The earlier discussion paper proposed prescribing types of permissible share classes and types of prohibited share classes. However, the Discussion Paper now proposes a principles-based approach.