Friday October 29 2021

News Source: Fund Regulation

Focus: UCITS KIID

Type: General

Country: Ireland




On 29 October, the Central Bank issued the 35th edition of the Central Bank UCITS Q&A, which includes a new Q&A, ID 1104.

The new Q&A, ID 1104, sets out the Central Bank’s expectations in relation to the filing of Key Investor Information Documents (“KIIDs”) for UCITS which are implementing ESMA’s Performance Fee Guidelines with effect from 31 December 2021.

ID 1104

Q. I am a UCITS with a financial year end of 31 December 2021 and will comply with the Central Bank’s Guidance on implementation of ESMA’s Performance Fee Guidelines with effect from that date. As a UCITS I am obliged to ensure a Key Investor Information Document (KIID) is provided to investors free of charge, in good time before the subscription in order to help them to reach informed investment decisions. I must also ensure the KIID is kept up-to-date and must file a KIID with the Central Bank as part of the annual KIID update by 22 February 2022 in compliance with Article 23 of Commission Regulation 583/2010. In respect of updates arising from the implementation of ESMA’s Performance Fee Guidelines should I file with the Central Bank (i) an updated KIID to reflect changes made to accord with those e Guidelines and (ii) a KIID in compliance with Article 23 of Commission Regulation 583/2010 (Article 23) by 22 February 2022?

A. With effect from the date of this QA (29 October 2021), a UCITS with a financial year end of 31 December 2021 which is implementing changes to its performance fee methodology to accord with ESMA’s Performance Fee Guidelines may elect to make either:

  • two KIID filings, one to reflect changes to the UCITS arising from implementation of ESMA’s Performance Fee Guidelines and one to meet KIID filing obligations arising under Article 23; or
  • a single filing to meet KIID filing obligations arising under Article 23 by 22 February 2022.

A UCITS electing for (ii), must nevertheless ensure that prospective investors are provided with sufficient information in relation to changes to the UCITS arising from implementation of ESMA’s Performance Fee Guidelines in order to help them to reach an informed investment decision.

Click on the above link for further information.