UCITS Publication of a Key Investor Information Document  

Introduction

1.      This note provides guidance on the publication of a Key Investor Information Document (‘KIID’) and the information which should be included therein.  It takes into account the following pieces of legislation and European Securities and Markets Authority (“ESMA”) Level 3 Guidance in this area:

          • Directive 2009/65/EC (“the UCITS Directive”);
          • Commission Regulation (EU) 583/2010  of 1 July 2010 (“Commission Regulation”);
          • CESR/10-1320 – ESMA’s guide to clear language and layout for the Key Investor Information  document;
          • CESR/10-1321 – ESMA’s template for the Key Investor Information document;
          • CESR/10-1318 - Selection and presentation of performance scenarios in the Key Investor Information document for structured UCITS;
          • CESR/10-673 - ESMA’s guidelines on the methodology for the calculation of the synthetic risk and reward indicator in the Key Investor Information Document;
          • CESR/10-674 – ESMA’s guidelines on the methodology for the calculation of the ongoing charges figure in the Key Investor Information Document;
          • Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019 (the “Central Bank UCITS Regulations”);
          • European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 ("UCITS Regulations").

Note - CESR/10-1320, CESR/10-1321, CESR/10-1318, CESR/10-673 and CESR/10-674 are collectively referred to throughout this document as “ESMA KIID Guidelines”.

2.      This guidance clarifies certain aspects of the Commission Regulation, the ESMA KIID Guidelines and the Central Bank UCITS Regulations and provides guidance for their practical application in drafting a KIID.

Charges - Performance Fees

3.  Where no performance fee is being paid out of the assets of the UCITS, it should be disclosed as “none” in the table of charges. 

Cross-References to Other Sources of information (Sign-posting)

4.  The Central Bank does not recommend cross referencing to specific page numbers of the prospectus as any non-material amendment to the prospectus of the UCITS may result in an amendment to the KIID referencing.  The longevity of the cross referencing may be increased by avoiding reference to specific page number.

5.  Every cross-reference to the prospectus or to the annual or half-yearly financial statements of a UCITS should be to the then-current version of the relevant document.

Application of the KIID to Share Classes

6.  Where charging structures differ between share classes, the Central Bank considers the share class with the highest overall charge to be the most appropriate representative share class, to avoid the risk of understating charges or overstating performance.  However, it is the responsibility of the UCITS to select the most suitable representative share class having regard to the characteristics of the UCITS, the nature of the differences between share classes in the UCITS and the range of choices on offer to each investor. 

Updates

7.  A responsible person should review the KIID of a UCITS before undertaking any new initiative that is likely to result in a significant number of new investors acquiring units in the relevant UCITS.

8.  The KIID should be reviewed and revised as appropriate as frequently as it is necessary to ensure that it continues to meet the requirements of the UCITS Regulations, the Central Bank UCITS Regulations and the Commission Regulation.

Filing Requirements

 9.  A KIID should be submitted to the Central Bank prior to the authorisation of each UCITS, or approval of a new sub-fund in the context of an umbrella UCITS.  In this case the KIID and the confirmation from the responsible person or its legal advisor, as prescribed below, will form part of the authorisation documents.

10.  The responsible person or its legal advisor should confirm in writing to the Central Bank that the KIID complies in full with the requirements of the UCITS Regulations, the Commission Regulation, all related ESMA Guidelines and the Central Bank UCITS Regulations.  This confirmation should also state that the information in the KIID does not conflict with the content of the prospectus, where relevant.

11.  In the case of existing UCITS, a new KIID or an amended KIID and the confirmation from the responsible person or its legal advisor should be forwarded by email to the Central Bank at UCITSKIID@centralbank.ie.  

12.  The Central Bank’s guidance on “Regulatory Reporting Requirements of Irish Authorised Investment Funds” requires annual KIID updates to be submitted via the ONR and not by email to UCITSKIID@centralbank.ie. Updates to KIIDs undertaken throughout the year should continue to be sent via email as set out in paragraph 23 above.

Medium of provision of KIID

13.  Regulation 101(1) of the UCITS Regulations states inter alia:

“Investment companies and, for each of the common contractual funds and unit trusts they manage, management companies, may provide key investor information in a durable medium or by means of a website.”
This includes a website of an entity related to the UCITS, for example the investment manager.
 
Issued:  5 October 2015
Latest revision: 6 June 2019