Thematic Review of UCITS Performance Fee concludes with redress of €1.5 million paid to shareholders

As required in the industry letter (PDF 188.91KB) the UCITS Fund Management Companies of all UCITS that charge performance fees have performed a review of their performance fee methodologies and reported their findings to the Central Bank.  A total of €1.5m has been refunded to 636 shareholders and 12 risk mitigation programmes have issued across individual UCITS and fund service providers. Following on from this review the Central Bank’s Guidance on UCITS performance fees has been codified in the updated Central Bank UCITS Regulations.  This provides the Central Bank with a firmer statutory footing on which to take action against firms for breaches of performance fees requirements in the future. The Thematic Review of UCITS Performance Fees has now concluded, however the Central Bank continues to make transparency and fees in the investment fund sector a supervisory priority.

More information:

<https://www.centralbank.ie/news/article/review-ucits-performance-fees-highlights-instances-non-compliance >