The KIDs are alright says Swiss government in Federal decision
The Swiss Federal Council has decided to approve the introduction of Key Investor Information Documents (KIDs), a decision welcomed by the Swiss Funds Association (SFA).
KIDs replace the simplified prospectus regulations through the introduction of Ucits IV. The Directive comes into effect on 1 July 2011, subject to a one-year transitional period.
All KIDs are required to be written on no more than two A4 sized pages or three pages in the case of structured funds. The documents must contain a risk/reward indicator.
The SFA said it welcomed the announcement that the KID requirements will come into force in Switzerland as of 15 July 2011.
“We would like to thank the authorities involved for dealing with this matter quickly and reaching a prompt decision. Introducing the KID in Switzerland at the same time as in the EU is in the interests of all Swiss and foreign fund promoters who market their Ucits in Switzerland. This means that they now need only produce a concise information document, which also increases
transparency for investors,” said SFA president Martin Thommen.
“The SFA will clarify the further questions relating to technical implementation with FINMA [the Swiss Financial Market Supervisory Authority] as quickly as possible. We will incorporate the detailed regulations of the EU supervisory authorities on the KID (CESR Guidelines) in the form of SFA self-regulation material, and submit this to FINMA for approval.
SFA chief executive Matthäus Den Otter added: “This will mean that Swiss retail funds can also use a KID in the foreseeable future.”