Our latest Funds and asset management regulatory news reports on ESMAs recent updates under the MMF Regulation. For regulatory developments of broad application, see also our Financial institutions general regulatory news in the related materials margin.

Contents

• UCITS and AIFS: ESMA supervisory briefing on costs
• MMF Regulation: ESMA updates reporting instructions, validations and schemas

UCITS and AIFs: ESMA supervisory briefing on costs

The European Securities and Markets Authority (ESMA) has published a supervisory briefing on the supervision by national competent authorities (NCAs) of costs applicable to Undertakings for the Collective Investment in Transferable Securities (UCITS) and alternative investment funds (AIFs).

ESMA's first annual statistical report in January 2019 on costs and performance of retail investment products showed the significant impact of costs on the final returns for investors. Following the publication of this report, ESMA started work with the NCAs to assess the different national approaches to the supervision of the cost-related provisions under UCITS AIFMD. To reduce the risk of regulatory arbitrage and ensure equal levels of investor protection throughout the EU, ESMA has produced this supervisory briefing addressed to NCAs. It focuses on how NCAs supervise the relevant cost-related provisions under the UCITS Directive and the AIFMD and on the managers' obligation to prevent undue costs being charged to investors.

ESMA will continue to monitor convergence in 2021.

MMF Regulation: ESMA updates reporting instructions, validations and schemas

ESMA has updated its reporting instructions, validations and schemas under the Regulation on money market funds (MMF Regulation). The updates follow feedback received by market participants.

Article 37 of the MMF Regulation requires MMF managers to submit data to their national competent authorities (NCAs), who will then transmit the data to ESMA. The first reports by MMF managers should be submitted in September 2020 to cover Q1 and Q2 reporting periods.

These documents replace the ones published for the first time by ESMA in July 2019 as a footnote in the executive summary of the final report on MMF Guidelines on reporting. This footnote has been updated and now refers to the same set of amended documents.