Funds Costs & Fees - Regulatory Spotlight

The last few years have seen an increased regulatory focus on fees and costs of UCITS funds. In this context, ESMA announced the launch of a common supervisory action ("CSA") with national competent authorities ("NCAs") on the supervision of costs and fees of UCITS across the EU in early January 2021. In its press release relating to this launch, ESMA states that "ensuring greater convergence in the supervision of costs is an integral part of ESMA's broader efforts on the cost of retail investment products and is key to improving investors' confidence in financial markets and reducing costs associated with obtaining financial products. The topic of costs and performance for retail investment products was identified as one of the Union Strategic Supervisory Priorities for NCAs."