UCITS IV aims to ensure that UCITS disclose relevant and meaningful information for investors by requiring the publication of key investor information in a short, concise document, the Key Investor Information Document (“KIID”).
The KIID is being designed to correct some of the shortcomings identified in the requirements applicable to the simplified prospectus, required under UCITS III.
The KIID must be short, focused, expressed in plain language, and presented in a way that enables comparisons to be easily made between different offerings. It must provide information regarding essential matters including the past performance of the UCITS, its costs and charges and its risk/reward profile. The KIID may be used without alteration (other than translation) in each Member State where the UCITS is authorised.
CESR launched various consultation projects on the Key Investor Information Document (“KIID”) during the summer to assist in finalising the form and content of this new document. These consultations were completed in September and an update on the content of this document is now expected to issue in the near future.
From 1 July 2011 (the implementation date for UCITS IV), all new UCITS must issue a KIID. All existing UCITS (i.e. those launched prior to 1 July 2011) must, based on the current consultation, replace their existing simplified prospectuses with KIIDs by 1 July 2012.