On 5 April 2016, the European Securities and Markets Authority (ESMA) published an updated version of its UCITS Q&A to include a new question and answer on UCITS investment in UCITS feeder funds. The Q&A confirms that a UCITS may not invest in a UCITS feeder fund. This confirmation is not surprising as a UCITS is not permitted to invest in another fund, which may invest more than 10% of its assets in other funds.

ESMA also updated its AIFMD Q&A to include a new question and answer on notification requirements regarding additional investment in existing AIFs. ESMA has clarified that where an AIF offers additional fund units to existing investors only, this does not require notification to the relevant national competent authority under Article 31(2) of AIFMD.

Other ESMA publications in April included: the responses it received to its discussion paper on the Benchmark Regulation; and ESMA’s own response to the European Commission’s Green Paper on Retail Financial Services.