CSSF launches the first phase of ESMA’s  CSA on the supervision of costs and fees of UCITS

Context and objectives

On 5 March 2021, the Commission de Surveillance du Secteur Financier (CSSF) published a communication regarding the launch of the European Securities and Markets Authority’s (ESMA) Common Supervisory Action (CSA) on the supervision of costs and fees of UCITS.

According to ESMA, the CSA aims to assess the compliance of supervised entities with:

• The relevant cost-related provisions in the UCITS framework; and
• The obligation of not charging investors with undue costs.

CSSF’s CSA questionnaire

The CSSF will launch the first phase of the CSA at the beginning of March 2021.

Concerning the scope of supervised entities, the CSSF confirmed it will contact Luxembourg-based UCITS managers to complete a dedicated questionnaire for all the UCITS they manage, i.e., Luxembourg-domiciled UCITS and foreign-domiciled UCITS.

The questionnaire will be accessible on the eDesk Portal.

• All concerned Luxembourg-based UCITS managers should submit their response through a dedicated section, which will be shared when available. 
• The CSSF will also provide additional guidance on how to submit the CSA questionnaire.
• Any complementary guidance from ESMA that may become available will also be included in this user guide and updated accordingly.

How can Deloitte help?

Deloitte’s specialists from our Audit & Assurance and our Advisory & Consulting practices can help you review your management company’s pricing process based on the evolution of the regulatory framework and market practices. We have more than 20 years’ experience with the different fees and pricing processes of investment funds. 

Via our Regulatory Watch Kaleidoscope service, Deloitte can also help you stay ahead of the regulatory curve to better manage and plan upcoming regulations.

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Regulatory Watch Kaleidoscope service