Sven Giegold, German MEP and member of the ECON Committee of the European Parliament will keep fighting to introduce a reform of regulation pertaining to performance fees as part of the Action Plan of the Capital Market Union.
In July 2016, his proposal to introduce such a reform of performance fees in the Consumer Finance Action Plan was defeated. Sven Giegold attributes this lack of support to the “right-wing MEPs who want to protect these unfair fees to the detriment of investors”.
The forthcoming study of on fund fees and performance conducted by the European Securities and Markets Authority ( ESMA) could represent an opportunity for the Green MEP to raise the issue again. Sven Giegold underlines that he is not against performance fees but considers that “it cannot be right to pay a performance if the fund manager has done nothing. I am not happy to pay for fluctuations”.
Read the full article in Ignites here