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01/01/2017

IOSCO Good Practice for Fund Fees and Expenses

On 25 August 2016, the Board of the International Organization of Securities Commissions (IOSCO) published a final report (Report) on good practices for fees and expenses of collective investment schemes (CISs).

The Report is published in the context of heightened regulatory scrutiny surrounding CISs and builds on existing standards with respect to CIS fees and expenses published in a report by IOSCO in 2004.The 23 examples of good practices set out in the Report cover permitted and prohibited costs, remuneration for CIS operators, initial and ongoing disclosures of fees, performance-related fees, transaction costs, commissions, and changes to fees and expenses. It also covers issues arising when a CIS invests in other vehicles (including funds of funds).