Sun, Feb 25, 2018
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. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  2. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  3. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac

  4. Low volatility funds fail to protect investors[more]

    From FT.com: A number of exchange traded funds (ETFs) designed to protect investors from sharp stock market gyrations lost more money than mainstream US stocks during a sell-off this month, underperforming in precisely the conditions in which they were meant to thrive. Low volatility ETFs, lau

  5. Legal - Hedge funds fight to save M&A arbitrage strategy, Fannie Mae and Freddie Mac ruling blow to hedge funds[more]

    Hedge funds fight to save M&A arbitrage strategy From FT.com: Hedge funds which use the US courts to wring higher prices for merger and acquisition deals are fighting to save the lucrative investment strategy, after a Delaware court ruling that threatens to shut it down. Verition Partner