IOSCO Publishes Report on International Standards for Fees and Expenses of Investment Funds

IOSCO published a consultation document titled Report on Elements of International Regulatory Standards on Fees and Expenses of Investment Funds. The report proposes an updated set of common international standards of best practices for the operators of Collective Investment Schemes ("CIS") and regulators.

The report builds on recommendations made in IOSCO's 2004 paper, and seeks to determine whether these standards are still valid or should be updated in light of certain regulatory changes and developments in the markets.

Specifically, the report examines and considers issues identified as being key across jurisdictions, including the following:

• the types of permitted fees and expenses;
• performance-related fees;
• the disclosure of fees and expenses;
• transaction costs; and
• hard and soft commissions on transactions.

According to the report, the evolution of the industry since 2004 has resulted in new CIS product structures, new investment strategies and changing distribution models, among other developments. Additionally, the report finds that regulatory developments in some jurisdictions and at the regional level have changed the ways in which fees and expenses are disclosed.

Comments on the consultation report should be submitted by September 23, 2015.

See: IOSCO Press Release.