The Central Bank of Ireland recently carried out a thematic review of the payment of performance fees by UCITS.
Where performance fees are charged to funds, or sub-funds, a review of the existing methodologies will need to be undertaken to ensure that performance fees charged comply with the UCITS Performance Fees Guidance including CBI findings as detailed in the CBI letter. Written confirmation must then be provided to the CBI by 30 November to confirm that the review has taken place and whether, in the course of the review:
- any required changes to existing methodologies have been identified;
- any required changes to prospectus disclosure have been identified;
- any instances of improper payment of performance fee have been identified; and
- that actions are being taken to remedy the above.
Please see the below links to the publication of the press release and an industry letter arising from the thematic review:
The above publications apply to all UCITS that provide for performance fees.