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Aki Corsoni-Husain
Aki Corsoni-Husain
  • Aki Corsoni-Husain

  • Partner
  • Cyprus
George Apostolou
George Apostolou
  • George Apostolou

  • Partner
  • Cyprus
Chiara Deceglie
Chiara Deceglie
  • Chiara Deceglie

  • Partner
  • Luxembourg
Massimiliano della Zonca
Massimiliano della Zonca
  • Massimiliano della Zonca

  • Senior Associate
  • Luxembourg
Philip Graham
Philip Graham
  • Philip Graham

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  • British Virgin Islands
Ayana Hull
Ayana Hull
  • Ayana Hull

  • Counsel
  • British Virgin Islands
Katerina Katsiami
Katerina Katsiami
  • Katerina Katsiami

  • Associate
  • Cyprus
Andrew Knight
Andrew Knight
  • Andrew Knight

  • Partner
  • Luxembourg
Joshua Mangeot
Joshua Mangeot
  • Joshua Mangeot

  • Counsel
  • British Virgin Islands
Mirza Manraj
Mirza Manraj
  • Mirza Manraj

  • Counsel
  • Hong Kong
Elina Mantrali
Mirza Manraj
  • Elina Mantrali

  • Associate
  • Cyprus
Vanessa Molloy
Vanessa Molloy
  • Vanessa Molloy

  • Partner
  • Luxembourg
Andrea Moundi Savvides
Andrea Moundi Savvides
  • Andrea Moundi Savvides

  • Consultant
  • Cyprus
Marina Stavrou
Marina Stavrou
  • Marina Stavrou

  • Associate
  • Cyprus
Matt Taber
Matt Taber
  • Matt Taber

  • Partner
  • Cayman Islands
Carolynn Vivian
Carolynn Vivian
  • Carolynn Vivian

  • Counsel
  • Cayman Islands

ESMA updates its Q&As for the funds industry

On 28 May 2021, the European Securities and Markets Authority (ESMA) published its updates to various Questions and Answers (Q&As) for numerous industry sectors. As relevant to the funds industry, we highlight those related to the AIFMD and UCITS regimes. Next week, we will cover off the new Q&As for investment firms.

AIFMD

The updates to the AIFMD Q&As deal with:

  • Reporting requirements to National Competent Authorities (NCAs) on fund data including price changes and measurements on portfolio yield curves (NET DV01); portfolio sensitivities to credit spreads (NET CS01) and portfolio sensitivity to movements in equity prices (Net Equity Delta). See further new Q&As 84 to 86 in Section III.
  • Guidelines on performance fees (relevant to UCITS and AIFs) in section XV of the Q&As:
    • New Q&A 4 – are registered AIFMs referred to in Article 3(2) of the AIFMD subject to ESMA’s guidelines on performance fees while marketing to retail investors units or shares of AIFs they manage? In strict terms no, but member states and NCAs may extend regulation in these circumstances on a national basis.
    • New Q&A 5 provides guidance on the setting of performance fees and performance reference periods for funds and AIFMs using a benchmark model to gauge and assess performance.
    • New Q&A 6 provides guidance on the setting of performance reference periods where a restructuring of AIFs occurs resulting in a newly established fund with no performance history (but which economically represents a continuation of a prior AIF).

UCITS

The UCITS Q&A is also updated to reflect the new commentary on performance fees as outlined above in respect of the AIFMD Q&A. 

Q&A on the application of the AIFMD can be found here.

Q&A on the application of the UCITS Directive can be found here.