13 April 2007

CESR call for evidence on key investor disclosures for UCITS

CESR issued a call for evidence on key investor disclosures for UCITS. On 11 April 2007 CESR received from the Commission a letter requesting CESR´s assistance on detailed content and form. The request clarifies the purpose and objective of the request, the focus of the work to be undertaken by CESR and the proposed organisation of the work and the time-table.

Currently, the simplified prospectus as required by the UCITS Directive is considered not to have achieved its initial objectives, since documents are often overly long and technical, and difficult for the average investor to understand and use. There have also been problems with the consistency of the information, making it harder for consumers to compare between funds, particularly where cross-border sales are involved.

The full Prospectus is also considered to be too long and technical for the average investor.

In its UCITS White Paper, the Commission proposed developing a new document which is practical and user-friendly.

CESR is requested to submit its recommendations and proposal by 1 March 2009.

Phase 1 will codify an ideal set of requirements and should be completed by end 2007

Phase 2 involves consultation and testing of the envisaged new disclosures. This survey and the consultation could take 10-12 months to complete.

Phase 3 includes the finalisation of recommendations and proposals.

In parallel CESR conducts two specific calls for evidence for consumers and representatives of individual retail investors, and on UCITS distribution

Deadline for comments is 25 May 2007.

Key Investor Disclosures under UCITS
Questionnaire on Simplified Prospectus for retail investors
UCITS Distribution

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