highway to transparency in a world of proper costs and charges

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On the highway to transparency in a world of proper costs and charges

How ESMA promotes a sound pricing governance for investment funds in the EU

ESMA has set high expectations for the formalization and monitoring of the cost-related provisions to ensure that no hidden costs are charged to investors.

The idea of the prevention of undue costs is not new. The UCITS IV1 and AIFMD2 have already introduced cost-related provisions with the goal of preventing undue costs being charged to investors.

These standards have been further elaborated by the Markets in Financial Instruments Directive II (MiFID II) that strengthens the requirements to disclose costs to investors and further requests that the cost-element of a product is considered at the product launch, as well as during its distribution stage. In addition, further disclosure requirements have been introduced by packaged retail investment and insurance products (PRIIPs) regulation, through the publication of cost estimates in the key
information documents (KID).

PDF - 469kb

Performance magazine issue 35, May 2021

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

PDF - 15mb
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