UCITS: ESMA consults on share classes

ESMA has issued a discussion paper on share classes under the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive.

This discussion paper, which follows an earlier paper issued by ESMA in December 2014, seeks views on ESMA's current thinking with respect to the development of a framework for UCITS share classes throughout the EU.

The paper describes the nature of share classes, the reasons for their existence, and the key elements of share classes, and establishes common principles that could form the basis of a regulatory framework that all share classes should comply with.

Comments to the consultation close on 6 June 2014. ESMA will consider the feedback in Q2 2016 and plans to take further action on share classes of UCITS by the end of 2016.