Are UCITS managers across the EU overcharging their retail investors? Well, The European Securities and Markets Authority (ESMA) is not jumping to conclusions – but sees enough reason to rein in all national supervisors for a nannied control campaign this year.
“Common Supervisory Action” (CSA) is the process framework that ESMA opts for, as it moves to make the supervision standards more equal across the EU when it comes to costs and fees of UCITS.
Under the effort, the union’s national competent authorities (NCA) in the area are ordered to undertake supervisory action in 2021, coordinated by ESMA, on costs and fees charged by fund managers. The CSA assessment framework will dictate parameters including scope, methodology, supervisory expectations and timeline, to support “comprehensive supervisory action in a convergent manner”, ESMA lines out in a press release.
On EU level, the costs and performance for retail investment products has been identified as a “union strategic supervisory priority” for NCAs.