On 27 April 2011, Mason Hayes+Curran participated in a workshop run by the Irish Funds Industry Association (“IFIA”) on the KIID at which the Central Bank addressed some of the practical and technical issues regarding the new document. The following five key areas were addressed: Format; Plain Language; Transitional Period; Updates and Filing.
It was suggested that the ‘plain language’ requirement may be one of the most challenging areas. The Central Bank provided some examples of what would and would not constitute plain language and some jargon which should be avoided.
Please click here to view the presentation by Gráinne McEvoy of the Central Bank and clips of the various topics addressed.
Under its grandfathering provisions, the Central Bank will allow a UCITS authorised prior to 30 June 2011 to continue to publish a simplified prospectus until 30 June 2012, after which time they must publish a KIID. UCITS seeking authorisation from 1 July 2011 must produce a KIID.
If an existing umbrella UCITS launches a new sub-fund after 30 June 2011, it may elect to publish either a KIID or simplified prospectus provided that all sub-funds adopt the same approach. Where a new share class of an existing UCITS is approved during the transitional period, the UCITS must treat it in the same way as existing share classes of that UCITS.