As part of a European Securities and Markets Authority's ("ESMA") Common Supervisory Action (the "CSA") on the supervision of costs and fees of UCITS, the Central Bank of Ireland (the "Central Bank") in 2021, conducted a review of the costs and fees charged to UCITS.
On 24 March 2023, the Central Bank issued a "Dear Chair" letter to fund management companies that sets out the main findings of the inspection, the Central Bank's supervisory expectations in this area and identifies the key actions to be taken. A copy of the letter entitled "2021 Common Supervisory Action on the supervision of Costs and Fees of UCITS" can be viewed on the Central Bank's website here.
While the scope of the CSA did not include a review of AIFMs, the Central Bank expects that the findings and actions of the review are also considered by AIFMs with respect to cost and fees charged to AIFs.
To read more, please see our briefing here.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
