ESMA · ESMA_QA_966 Answer Published
Crystallisation of performance fees in case of the creation of a new UCITS/compartment/share class in the course of the financial year
- Regulation
- Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC
- Topic
- Costs and fees
- Submitted
- 2021-07-01
- Answered
- 2024-10-03
Question
In case of creation of a new compartment/share class in an existing UCITS in the course of its financial year or in case of creation of a new UCITS, can performance fees be crystallised after less than 12 months from the date of creation of such a new UCITS/compartment/share class (i.e.: the date in which the share class is launched/seeded)?
Answer
[ESMA 34-43-392 UCITS Q&A, Section 11, 6a] No. Performance fees, if any, should be crystallised after at least 12 months from the creation of a new UCITS/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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