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ARTICLE · 16 MARCH 2020

CSSF Updates FAQ On UCITS Legislation Regarding Investment Fees

Chevalier & Sciales
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Luxembourg's Financial Sector Supervisory Authority has published on March 10 the eighth update of its Frequently-Asked Questions document on the legislation of December 17, 2010 on undertakings for collective investment.

LuxembourgFinance and Banking
Olivier Sciales
Olivier Sciales
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Luxembourg's Financial Sector Supervisory Authority (CSSF) has published on March 10 the eighth update of its Frequently-Asked Questions document on the legislation of December 17, 2010 on undertakings for collective investment. The changes deal with disclosure of performance, investment managers' and investment advisors' fees to investors in a UCITS fund.

Clarifying how a UCITS should disclose performance fees to the investors and to whom performance fees are payable, the CSSF says performance or performance-related fees are designed to motivate the investment manager to outperform a benchmark or achieve some other performance target. The investment manager, it says, is responsible and accountable for the investments of the fund and its performance.

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