ESMA_QA_1109

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1109

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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: Efficient portfolio management (EPM) techniques

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

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Question

Submission Date: 15 March 2013

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

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ESMA Answer

Answer Date: 15-03-2013

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