Following the implementation of ESMA Cost & Charges (European Regulation), we supported one of the major Asset Managers to ensure compliance.

Our engagement focused on developing and implementing periodic reviews of a structured pricing process for undue costs in UCITS and AIFs. We aimed to establish a clear framework and governance for determining and reviewing investor costs and mitigating conflicts of interest to safeguard investors’ interests.

Approach:

Our approach encompassed a series of key activities, beginning with an in-depth analysis and interpretation of regulatory rules.

We established clear project governance and identified any existing gaps in compliance. We worked collaboratively with internal Compliance and business functions to determine the remedial actions required, capturing the existing regulatory landscape. Subsequently, we crafted and oversaw the implementation of a comprehensive remediation plan, meticulously addressing each identified issue.

Finally, we developed and embedded frameworks and policies in the business using a practical training approach conducive to ongoing adherence to regulatory requirements.

Results:

We worked closely with the Compliance function to deliver the changes required to comply with new European regulations.

We developed and implemented periodic reviews of a structured pricing process on undue costs and took responsibility amongst management bodies in determining and reviewing the fees charged to investors.