|
The European Securities and Markets Authority (ESMA), through its Consultation Papers released in December 2014 and June 2016, has defined four principles with respect to the standardization of the use of share classes of the same UCITS across EU member states.
- Principle 1: Share classes of the same fund should have a common investment objective and hedging technique should be used only to mitigate currency risks.
- Principle 2: Appropriate procedures have to be implemented to minimize the contagion risk amongst different share classes of a given fund.
- Principle 3: Before launching a share class, all features should be pre-determined
- Principle 4: Investors should be informed on the differences between share classes of a given...
|