Mon, Jul 28, 2014
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag