The International Organization of Securities Commissions (IOSCO) has published a consultation report on Elements of International Regulatory Standards on Fees and Expenses of Investment Funds. The consultation report proposes an updated set of common international standards of best practice for the operators of collective investment schemes (CIS) and regulators to consider.
The consultation report follows the 2004 report on International Regulatory Standards on Fees and Expenses of Investment Funds which had recommended a set of common international standards of best practice for CIS operators and regulators to consider. The consultation report examines current regulatory practices concerning CIS fees and expenses, to look at whether the standards of best practice in the 2004 report are still valid or might be updated or supplemented in the light of market and regulatory changes.
Like the 2004 paper, the consultation report looks at issues that have been identified as being key across jurisdictions. Such issues concern:
- the types of permitted fees and expenses;
- performance-related fees;
- disclosure of fees and expenses;
- transaction costs; and
- hard and soft commissions on transactions.
The deadline for comments on the consultation report is 23 September 2015.