What is a KIID?
The UCITS IV Directive sets out the framework for the KIID, a stand-alone, pre-contractual, 2-page document containing the essential features of the fund and is to be systematically provided to investors before they decide to invest.
In an attempt to create a structure for the provision of easily understandable and engaging fund disclosures, Directive 2009/65/EC on UCITS IV and Commission Regulation 583/2010 has replaced the simplified prospectus with the Key Investor Information Document (“KIID”).
The main objectives of the KIID remain the same as for the simplified prospectus – provide retail investors with:
- better disclosure,
- easier to understand content and,
- to facilitate comparisons between products.
The key differentiating factor is that under UCITS IV, the European Commission was obliged to adopt implementing measures clearly defining the KIID’s scope and nature.
When considering the KIID, there are three key aspects – the pre-defined content, the production of the KIID and its dissemination to internal and external parties:
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| 1. Investment objectives and policy 2. Risk/reward profile 3. Costs and associated charges 4. Past performance 5. Practical information |
1. Standard and harmonised layout 2. Plain language |
1. Timely KIID publication to regulatory and non-regulatory recipients - Regulatory bodies - Investors - Other counterparties 2. Coordination of production and update process |
Focus on
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