ESMA · ESMA_QA_1109 Answer Published

ESMA’s guidelines on ETFs and other UCITS issues - Efficient portfolio management techniques

Regulation
Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
Topic
Efficient portfolio management (EPM) techniques
Submitted
2013-03-15
Answered
2013-03-15
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Question

In some jurisdictions, UCITS management companies may also act as securities lending agents. In this case, what information should be provided to investors?

Answer

[ESMA 34-43-392 UCITS Q&A, section 3, Q&A 4b] First, pursuant to paragraph 28 of the guidelines, it should be disclosed to investors that the UCITS management company acts a securities lending agent. Also, according to paragraph 35 of the guidelines, the annual report of the UCITS should provide investors with details on the amount of fees paid to the UCITS management company that may be deducted from the gross revenues arising from efficient portfolio management techniques.
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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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