On 1 July 2011 the UCITS IV European Directive was implemented in the UK. Amongst other outcomes, it signalled the beginning of a transition away from the Simplified Prospectus for UCITS funds.
The Directive saw the introduction of a new fund information document, the Key Investor Information Document (KIID). The FSA, alongside the Treasury, ratified the implementation of KIIDs for all new UCITS funds from 1 July 2011 and all existing UCITS funds by 1 July 2012.
The KIID is designed to provide ‘appropriate product information about the essential characteristics of the UCITS concerned, which is to be provided to investors so that they are reasonably able to understand the nature and the risks of the investment product that has been offered to them and, consequently, to take investment decisions on an informed basis’.
But exactly what is a KIID (click here for an example), when should it be used and what are your responsibilities as financial advisers in the provision of KIIDs?