UCITS - Remuneration Guidelines

ESMA have published their much-awaited consultation on guidelines on the UCITS V remuneration requirements.

This consultation paper is the first step in the development of the guidelines on remuneration policies required by UCITS V and sets out ESMA’s formal proposals for these guidelines as well as a potential revision of the AIFMD remuneration guidelines.  ESMA will consider the feedback it receives to this consultation with a view to finalising the UCITS Remuneration Guidelines and publishing a final report by early Q1 2016, ahead of the transposition deadline for the UCITS V Directive on 18 March 2016. The final report is expected to also include the revision of the AIFMD Remuneration Guidelines which is proposed in the present paper.

ESMA are proposing to be more flexible than the European Banking Authority were recently when it comes to applying proportionality to certain requirements which is good news.  The not so good news is their timetable for issuing the finalised Guidance is tight and their proposed application of the Guidelines to any delegate, irrespective where they are situated, which take investment decisions (which is not a surprise as it mirrors the AIFMD Remuneration Guidelines and the recitals to the UCITS V Directive).

The consultation period will run until 23 October 2015.  We would be happy to include any comments our clients have in our response if they do not want to submit their own one.  Please contact any of the Asset Management & Investment Funds partners listed.