On 5 November 2020, ESMA published the official translations of its Guidelines on performance fees in UCITS and certain types of AIFs. The guidelines apply to fund managers and national competent authorities (NCAs) from 5 January 2021. Managers of any new funds created after 5 January 2021 with a performance fee, or any funds existing before the date of application that introduce a performance fee for the first time after that date, should comply with the guidelines immediately in respect of those funds. Managers of funds with a performance fee existing before 5 January 2021 should apply the guidelines to those funds by the beginning of the financial year following 5 July 2021. NCAs must notify ESMA whether they comply, or intend to comply, with the guidelines by 5 January 2021.
You can listen to an overview from Michael Barr, Partner and read our In Focus paper here.
