ESMA’s Discussion Paper on Share Classes of UCITS

On 23 December 2014, ESMA published a “Discussion Paper on Share Classes of UCITS”. The UCITS Directive recognises that UCITS can offer different share classes to investors but it does not outline how share classes within a UCITS fund can differ from each other. As the permitted range and type of share classes within UCITS varies from country to country, ESMA wishes to implement a common understanding across the EU.

ESMA’s discussion paper outlines its views on what constitutes a share class, including three principles on how to distinguish share classes from compartments of UCITS and examples of structures which comply with these principles.

UCITS: ESMA's discussion paper on share classes of UCITS

Next steps

ESMA will use the feedback from Stakeholders to this discussion paper when developing its guidelines. The deadline for submitting responses is 27 March 2015. 

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