The European Securities and Markets Authority ("ESMA") has published an opinion on the topic of UCITS share classes (the "Opinion"), confirming four high-level principles which a UCITS must follow when setting up different share classes and considering the manner in which certain share class hedging techniques comply with such principles.
The publication of the Opinion follows a consultation period launched by two separate discussion papers issued in December 2014 and April 2016 respectively, which saw ESMA's analysis evolving from an examples-based approach (providing for non-exhaustive lists of permissible and prohibited differentiation at share class level) to a principles-based approach.
We have prepared a detailed briefing note providing further information on ESMA's Opinion, including its implications for current share class hedging arrangements and the applicable transitional provisions.
ESMA's Opinion may be accessed here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.