ESMA has published a discussion paper on UCITS share classes, as it has identified diverging national practices as to the types of share class that are permitted. UCITS IV recognises the possibility for UCITS to offer different share classes to investors, but it does not prescribe whether, and to what extent, share classes of a given UCITS can differ from one another. In the discussion paper, ESMA sets out a set of high-level principles regarding share classes, focused on investor protection. Further detail is offered, where necessary, by a series of operational principles. ESMA is now seeking feedback on whether, and how, share classes can actually work under the principles it has outlined. Comments are invited by 6 June 2016 and ESMA is expected to take further action on UCITS share classes by the end of 2016.