On 18th December, the CSSF published Results of the Thematic Review on Efficient Portfolio Management – Revenues & Costs/Fees and of the CSSF FAQ on the use of Securities Financing Transactions by UCITS.
The Efficient Portfolio Management relates to techniques like : securities lending, repurchase agreement, reverse repurchase agreement.
The IFM must ensure the following points :
– More decent disclosure of the fees and cost (annual report and prospectus)
– Better management of the conflict of Interest and of the operatinh model
– Improve the controls of the best execution policy
– All the revenues arising from EPM must go the the UCITs. The IFM must control this point
– Improve the Investment restriction controls based on collateral and deposition (limit of 20% per issuer)
The thematic report can be found here : https://lnkd.in/dddtjPc
ad a FAQ on Use of Securities Financing Transactions by UCITS