The Key Investor Information Document (KIID) was introduced in July 2011 as part of the UCITS IV Directive. It is designed to replace the simplified prospectus in a new notification procedure within the EU. The KIID format and wording has been heavily prescribed by the ESMA (European Securities and Markets Authority) with the objective of providing retail investors with a “plain language” document from which to compare all UCITS products.
FundAssist have undertaken extensive research into KIID requirements. We have met and continue to meet with a large number of industry participants to exchange views and address implementation challenges in order to arrive at our service offerings.
FundAssist offers a KIID preparation, management, monitoring and dissemination service to enable asset managers to outsource the preparation and on-going maintenance of the KIID. This service includes derivation of the disclosed financial, risk and cost information and the management of sets of KIIDs for access by investors, distributors and regulators. It also integrates with FundAssist’s EU notification and non-EU registration service.
Automation plays a significant role in the whole KIID process. FundAssist takes a modular and integrated approach to automation with respect to the following areas:
- Template roll over
- SRRI calculation & monitoring
- Dynamic text collation
- On-going charges, calculation & monitoring
- Static data collation
- Performance chart generation
- Management control and dissemination
Template preparation and set-up is an imperative part of the process and a Program Manager is assigned to each client at the outset to ensure a smooth process. FundAssist works closely with the client to build a template incorporating the client’s corporate guidelines as allowed by KIID regulations and in compliance with the strict European regulations.
Our team of experts guides the client through the entire KIID preparation providing ‘workshops’ to understand plain language text, SRRI calculations and dissemination challenges etc. FundAssist maps all data sources to our KIID generation model and ensures accurate and timely delivery of information.
A dedicated online facility is provided to the client that enables the client to upload, review, amend and approve content throughout the life of the KIID. The web facility also acts as a library to archive previous KIID’s for evidential purposes.
FundAssist liaises with your legal counsel in the fund domicile to ensure compatibility of the KIID with the fund prospectus, risk management process and other fund documentation as needed.
On-going research is carried out on country-specific aspects of the KIID with particular regard to local legal, marketing and taxation requirements. Over the last ten years, FundAssist has developed close contacts with host country regulators, advisors and distributors. Therefore, we are ideally positioned to keep you informed of local requirements and industry practice.
The KIID has to be available within 35 business days from the 31st of December each year, reflecting year-end information. This is a tight preparation window and FundAssist undertakes end-to-end responsibility to meet this deadline. We proactively manage the sourcing of information, preparation of content, production and controlled dissemination of KIIDs.
Our qualified professionals prepare the SRRI, performance, cost and other disclosures, working with your administrator and other service providers as required. The KIID is translated into the necessary languages using glossaries, style guides and semi-automated tools to ensure high quality and consistency.
The service includes on-going monitoring of fund information as prescribed in the UCITS IV Directive and where material changes have occurred the KIID is updated and reissued.
Changes to your product range, such as creation or removal of share classes, require corresponding changes to your KIID range. Changes to the prospectus can be coordinated with KIID updates on your behalf. A key feature of our service is the controls and systems we employ to ensure there is an evidential audit trail of the preparation, revision and dissemination process. This gives you comfort that information published can be fully substantiated.
FundAssist provides a comprehensive KIID monitoring service in accordance with the guidelines provided by ESMA. Our service covers the following key areas:
- SRRI data monitoring
- On-going charges monitoring
- Prospectus monitoring
- Financial instruments usage monitoring
FundAssist have built applications to perform the quantitative data analysis that is required to generate and monitor SRRI and the on-going charges. Where materiality limits are breached an update to the appropriate KIID is initiated and notification is sent to the relevant parties.
FundAssist Express (Dissemination)
Once the KIID is completed or updated, a robust management and delivery system is required to ensure the most up to date KIID’s and associated documentation are made available to prospective investors. FundAssist Express provides an online repository, revision management and publication control functions to meet this challenge. The online repository, which stores the prospectus, annual reports, fact sheets and other fund documentation in addition to the KIID, is available 24/7 with high bandwidth speeds allowing for a fast and interactive response. Express can monitor the dissemination of all KIID’s recording either access by a third party or ‘push’ delivery of documentation. In addition to managing delivery, Express also has a function to archive KIID’s and related documents for evidential purposes and to resolve future queries.