Under the EU directive UCITS IV that came into effect July 1, a new standardised brochure--called a key investor information document (KIID)--must be provided to each individual investor before they make an investment decision. Fund managers have a year’s transition time to starting using the KIID. Given the complexity in producing, managing and distributing a KIDD for each and every investment class in a fund, most fund firms contacted by Delano.lu said they are taking advantage of the grace period.
“The obligation to produce a concise document for the benefit of investors received an overall approval, but attracted little more than a passing interest at first,” Christopher Stuart-Sinclair, director at Deloitte Luxembourg, said in a press statement. “As the deadline approaches, however, the challenge of such an undertaking begins to dawn.”
Deloitte’s survey, released Wednesday, also found that 28 percent of respondents intend to publish KIIDs in seven languages, 64 percent will partially outsource the process, and 70 percent have not “clarified their liability regarding [the KIID] with their legal advisor.”
Deloitte Luxembourg conducted the survey during the first two quarters of the year. The report does not indicate how many firms were polled, but says the research is representative of the different sizes of cross-border UCITS fund families.