Sat, May 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Key Investor Information Document (KID) also coming soon to Switzerland

Wednesday, June 29, 2011

Martin Thommen
Opalesque Industry Update - The Swiss Funds Association SFA welcomes the introduction of the KID in Switzerland, following the Federal Council’s decision to give this the go-ahead at its meeting today.

Under the EU’s UCITS IV Directive, all Undertakings for Collective Investment in Transferable Securities (UCITS) that are publicly marketed in the EU will have to replace their simplified prospectus with the Key Investor Information Document (KID) from 1 July 2011, subject to a one-year transitional period. This standardized information for investors is to be written in readily understandable form and is to comprise no more than two A-4 pages, or three A-4 pages in the case of structured funds.

The KID offers certain improvements compared with the simplified prospectus. In particular, the new synthetic risk and reward indicator will be mandatory, and will express the risk/return profile of a fund as a number between 1 (lower risk/typically lower rewards) to 7 (higher risk/typically higher rewards).

The SFA welcomes the introduction of the KID, and has actively supported the authorities responsible. Only minor amendments are required to the collective investment schemes legislation, and these could be implemented in the Federal Councilʼs Ordinance (CISO). The corresponding amendments to the CISO will enter into force on 15 July 2011. “We would like to thank the authorities involved for dealing with this matter quickly and reaching a prompt decision. Introducing the KID in Switzerland at the same time as in the EU is in the interests of all Swiss and foreign fund promoters who market their UCITS in Switzerland.

This means that they now need only produce a concise information document, which also increases transparency for investors,” explained SFA President Martin Thommen. “The SFA will clarify the further questions relating to technical implementation with FINMA as quickly as possible. We will incorporate the detailed regulations of the EU supervisory authorities on the KID (CESR Guidelines) in the form of SFA self-regulation material, and submit this to FINMA for approval. This will mean that Swiss retail funds can also use a KID in the foreseeable future,” said SFA CEO Dr. Matthäus Den Otter.

Full press release: Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  2. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  3. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  4. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  5. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the