Esma curbs high-watermark performance fees – Ignites Europe

Europe’s markets watchdog is pushing ahead with plans to limit the ability of funds with high-watermark performance fee structures to freely reset those fees after a short period of time.

The European Securities and Markets Authority published its final guidance on performance fees for Ucits and some retail-focused alternative investment funds on Friday after an industry consultation.The consultation period revealed sharp divides in the funds industry as to the benefits of allowing funds to reset high watermarks at their own discretion.

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