ESMA · ESMA_QA_1033 Published Answer Updated

ESMA’s guidelines on performance fees in UCITS and certain types of AIFs

Regulation
Alternative Investment Fund Managers Directive (AIFMD) Directive 2011/61/EU
Topic
Costs and fees
Submitted
2021-07-16
Answered
2024-10-03

Question

In case of creation of a new compartment/share class in an existing AIF in the course of its financial year or in case of creation of a new AIF, can performance fees be crystallised after less than 12 months from the date of creation of such a new AIF/compartment/share class (i.e.: the date in which the share class is launched/seeded)?

Answer

[ESMA 34-32-352 AIFMD Q&A, Section 15, 8] No. Performance fees, if any, should be crystallised after at least 12 months from the creation of a new AIF/compartment/share class. Moreover, paragraph 35 of the guidelines foresees that the crystallisation date should be the same for all share classes of a fund that levies a performance fee.

This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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