ESMA_QA_1106

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1106

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Regulatory Context

Regulation : UCITS

Level 1 Regulation: Undertakings for Collective Investment in Transferable Securities Directive (UCITS) Directive 2009/65/EC

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: ETFs

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

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Question

Submission Date: 11 July 2013

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

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ESMA Answer

Answer Date: 11-07-2013

[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 document was automatically extracted from the ESMA EMIR Q&A database.