Regulatory Alerts2024-07-05
Clarifications of Requirements Related to the Distribution of Undertakings for Collective Investment in Transferable Securities (UCITS)
The Norwegian Financial Supervisory Authority issues clarifications prohibiting fund management companies from making payments to distributors that are passed on to investors, as this practice violates the duty of equal treatment and creates conflicts of interest. The Authority mandates that nominees must not aggregate subscription amounts from multiple clients to access lower-fee share classes, ensuring each investor pays the fee applicable to their specific investment level. Additionally, fund managers must ensure distributors have robust procedures to inform investors and facilitate their participation in shareholder meetings, even when investors are registered through nominees.
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