European Securities and Markets Authority Publishes Report on Costs Disclosure Standards for Fund Managers

The European Securities and Markets Authority has published its final report on its proposed Regulatory Technical Standards on costs disclosure requirements for European Long-Term Investment Fund Managers. The report gives an overview of the feedback ESMA received to its consultation on the standards, which closed on June 29, 2019, and explains ESMA’s proposed next steps. The report does not, however, contain the final RTS. ESMA is waiting for the publication of Regulatory Technical Standards under the Packaged Retail and Insurance-based Investment Products Regulation to publish its final RTS as they must take into account the amendments to the PRIIPs RTS on key information documents.
 
Key feedback received from respondents to the consultation included:
 

• Unanimous agreement that the PRIIPs Regulation and associated regulatory material are relevant for the purposes of the ELTIF RTS;
• Certain concerns around the classification of costs as either annual costs (that could be expressed as a percentage of capital) or fixed costs;
• Broad agreement with ESMA’s proposal that the presentation format for costs set out in the PRIIPs Delegated Regulation is not suitable for the ELTIF RTS and that the detailed design of the presentation formats should not be standardized, although certain respondents requested ESMA to clarify that the presentation format may be extended by adding tailor-made columns for multiple share class issuances; and
• Unanimous agreement that transitional or grandfathering provisions would be required for the proposed RTS given they will enter into force after the date of application of the ELTIF Regulation.

 
View ESMA's RTS on costs disclosure standards.
 
View details of ESMA’s consultation on the draft RTS.
 
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