Common Supervisory Action on valuation of UCITS and open ended AIFs

20 January 2022 

ESMA launches a common supervisory action with NCAS on valuation of UCITS and open-ended AIFs

On 20 January 2022, the European Securities and Markets Authority (ESMA) launched their latest Common Supervisory Action (CSA) together with National Competent Authorities (NCAs) with the aim of evaluating Undertakings for the Collective Investment in Transferable Securities (UCITS) and open-ended Alternative Investment Funds (AIFs) across the European Union.

As part of this CSA, throughout 2022 licensed entities will be assessed using a common methodology in terms of their compliance with valuation-related provisions within the UCITS and Alternative Investment Fund Managers Directive (AIFMD) legal frameworks.

Such evaluation is intended to focus on the valuation of less liquid assets, such as unlisted equities, unrated bonds, corporate debt, real estate, high yield bonds, emerging markets, listed equities that are not actively traded, and bank loans. 

The Malta Financial Services Authority (MFSA) has already expressed its commitment in undertaking the CSA, and is expected to get in touch with the relevant license holders in line with the ESMA protocols, assessing the governance structures, and policies and procedures in the context of valuation of assets.

6 January 2021

ESMA launches a common supervisory action with NCAS on the supervision of costs and fees of UCITS

On 6 January 2021 this CSA was launched focusing particularly on cost-related provisions in the UCITS framework and the obligation not to charge investors undue costs. In this regard, the ESMA briefing on the supervision of costs was also taken into consideration in attempting to supervise cost-related issues and thereby ensuring investor protection in the EU.

30 January 2020

ESMA launches a common supervisory action with NCAS on UCITS liquidity risk management

On 30 January 2020 ESMA launched this CSA on the supervision of UCITS’ managers liquidity risk management across the EU. Throughout 2020 NCAs sought to ensure supervisory convergence in the way they supervise liquidity risk management and ultimately enhance the protection of investors across the EU.