Given the lack of a common legal and regulatory framework, EU countries are divided with respect to whether different types of units or shares (share classes) of the same UCITS sub-fund may differ from one another. In response to the confusion, the European Securities and Markets Authority (ESMA) identified four principles for EU investment managers to follow when establishing share classes.
- a common investment objective;
- pre-determination; and
BBH FX experts Mark Kieran, Jay Moore, and Michael Carney summarize each of these principles and explain how BBH can assist global investment managers in responding to this varied set of guidelines.
Read the full paper here.