ESMA · ESMA_QA_1106 Answer Published

ESMA’s guidelines on ETFs and other UCITS issues - Secondary market

Regulation
Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
Topic
ETFs
Submitted
2013-07-11
Answered
2013-07-11
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Question

If a UCITS ETF is open for direct redemption for secondary market investors, what should be the redemption price?

Answer

[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 3a] If secondary market investors are given the possibility to redeem directly at the level of the UCITS ETF, the redemption price should be the Net Asset Value (NAV) from which costs may be deducted. According to paragraph 24 of the guidelines the costs of direct redemptions should not be excessive.
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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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