The Luxembourg Financial Sector Supervisory Commission (CSSF) on 19 November 2024 the launch of the 2024 data collection exercise by the European Securities and Markets Authority (Esma), aimed at assessing the costs associated with investments in undertakings for collective investment in transferable securities (Ucits) and alternative investment funds (AIFs). This initiative follows a previous from Esma on 14 November 2024, which outlined plans to produce a one-off report on these investment costs.

The data collection is part of the ongoing review of the alternative investment fund managers directive (AIFMD) and the Ucits directive, both of which mandate Esma to submit a comprehensive report by October 2025. This report will be presented to the European parliament, the European Council and the European Commission. It will examine the costs charged to investors in Ucits and AIFs, focusing on the rationale behind these costs and any discrepancies, particularly those arising from the different characteristics of the funds.

To fulfil these requirements, national competent authorities, including the CSSF in Luxembourg, are responsible for gathering and submitting data on the costs incurred by investors or by Ucits and AIF fund managers in relation to the operation of these funds. This data will cover all fees, charges, and expenses, whether directly or indirectly incurred, that are associated with investing in the funds. As part of this effort, the CSSF will collect data from Ucits and AIF fund managers, as well as from distributors, including investment firms, credit institutions, independent financial advisors and neo-brokers.

The CSSF is set to begin this targeted data collection by the end of November 2024.