The Undertakings for Collective Investment in Transferable Securities Directive UCITS IV should be enforced on 1 July 2011. Once implemented, the new directive should facilitate cross-border UCITS distribution and provide investors with an enlarged and more competitive funds offer.
The Key Investor Information Document (KIID), a document designed to replace the simplified prospectus and provide investors with clearer information and greater protection. It will be compulsory for any new UCITS IV fund created as from 1 July and should progressively replace the simplified prospectus whenever a conversion from a UCITS III to UCITS IV fund is completed.
All member states can benefit from a period of transition “A Grand Fathering Period” that can be extended until 30 June 2012. This means that the simplified prospectus can still be used until that date for unconverted UCITS III funds. UCITS IV - Understanding the key Investor Information Document (KIID)