FT: Fund managers 'lagging behind' on Kiids deadline

30 August 2011

Key investor information documents (Kiids) became compulsory for all new funds from July 1 this year, as part of the implementation of UCITS IV regulations. They are designed to replace the simplified prospectus with a more concise and accessible document.

Jim O'Reilly, managing director of FundAssist, said some fund managers may not be able to hit the deadline - particularly those running more complex strategies. He said: "The Kiid is a completely new concept, so it is not surprising that some people are struggling”.

Mario Mantrisi, a member of services provider Kneip's executive board, said some fund providers had underestimated the length of time it would take to process data for the documents. He added that uncertainty also remained over how charges should be disclosed. He said: "Charges will possibly be pushed higher if things like securities lending are included in the TER. There is uncertainty about how the market will calculate charges and what will and won't be included".

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