EUROPE: ESMA publishes updated Q&A on UCITS KIID

Thursday March 26 2015

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The European Securities and Markets Authority has published an updated Q&A on the Key Investor Information Document for UCITS.

A new Question 4g has been added on performance history and mergers. In the case of a merger where the receiving UCITS is a newly established UCITS with no performance history, UCITS should use the past performance of the merging UCITS in the KIID of the receiving UCITS if the competent authority of the receiving UCITS reasonably assesses that the merger does not impact the UCITS’ performance. ESMA expects the performance of the UCITS to be impacted if there is, inter alia, a change to the investment policy or to the entities involved in the investment management. It should also be made clear in the KIID of the receiving UCITS that the performance is that of the merging UCITS.

Click on the above link for the revised Q&A.