#UCITS#Performance
For PE/VC asset class performance fee is not a blackbox. Here Carry is paid on realised returns once hurdle rate for LPs is achieved. Not so simple in UCITS space where performance fees may be payable on paper returns or even when no return has been created.
The Central Bank of Ireland reports on irregularities on performance fee charging practices. Definitely a WCGW for the Fund Board and the Depositary to look for. https://www.centralbank.ie/news/article/review-ucits-performance-fees-highlights-instances-non-compliance
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#CSSF#Regulation#Lux#Depositary
On 23 August 2018, the Luxembourg supervisory authority of the financial sector, the CSSF, published a new circular, Circular 18/697 (the “Circular”), which is addressed to Luxembourg credit institutions, investment firms and certain professionals of the financial sector acting as depositaries for non-UCITS
#CSSF#Regulation#Lux
The main section of the circular sets out detailed rules concerning the shareholders of management companies, the minimum equity requirements, corporate bodies, administrative organisation, internal governance and internal controls. The provisions applicable to the delegation of key functions, including portfolio management, the fund administration and marketing are of particular interest. Further, the circular sets out the provisions applicable to management companies providing discretionary management services on an individual basis and those applicable to management companies providing services (See more)on a cross border basis or wishing to prevail of the European passport for the establishment of branches within the European Union.
