ALFI UCITS IV implementation project – KID Q&A Document
ALFI UCITS IV implementation project – KID Q&A Document
ALFI UCITS IV implementation project – KID Q&A Document
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Chapter 5Durable MediumArt 38Q. What is considered to be a durable medium other than paper? Computer discs or PDF documents sent bye-mail? Other foreseeable media?A. Media such as computer discs, flash cards and e-mail bearing PDF files or other forms of document may beconsidered to be durable media provided that they may be retained by the investor. Recital 17 of the EU Regulation583/2010 describes important matters such as the long-term integrity of the medium and measures to preventunauthorised modification of the <strong>KID</strong> in these forms. The Recital specifically refers to Directive 2006/73/EC for rules ondurable media. (The text of Art 2 of Directive 2006/73/EC says that "'durable medium' means any instrument whichenables a client to store information addressed personally to that client in a way accessible for future reference for aperiod of time adequate for the purposes of the information and which allows the unchanged reproduction of theinformation stored". The text of Art 3 of Directive 2006/73/EC is for the most part the same as the text of Art 38 of theEU Regulation 583/2010.)Q. Should management companies/distributors record for each investor the selected medium?A. Since the investor must explicitly agree to receive the <strong>KID</strong> in a durable medium other than paper (Art 38(1)(b)), themanagement company or the distributor who obtained the agreement should keep a record of it.Q. When a management company/distributor electronically notifies investors of the address of the website,should it also provide exactly the address on the website where the information may be accessed or is itenough to provide the home page?A. Art 38(2)(c) of the EU Regulation 583/2010 says that the electronic notification must include "the address of thewebsite and the place on the website where the information may be accessed". For example:xyz.com/<strong>KID</strong>/umbrella-nnn/Website addressPlace on the website where the information may be accessedxyz.com/<strong>KID</strong>/umbrella-nnn/compartment-nnn/shareclass-nnn/The practitioner must decide how much detail to provide in the electronic communication and, in the case of the shortlink, how to design the website to enable the investor to download the relevant <strong>KID</strong> taking into account whether it is aninstitutional or retail investor, what language is required, the jurisdiction in which distribution will take place, etc.Q. When the web address changes, should management companies/distributors send an update to investors?A. There is no obligation to send an update to investors. Practitioners may wish to consider their web site designcarefully so that the address is unlikely to change. If change is unavoidable, practitioners should leave a "redirection"facility on the old web page, which ensures that visitors reach the correct page or information about who the investorshould contact in order to retrieve the required <strong>KID</strong>.Q. On whose website must the <strong>KID</strong> be published? The <strong>UCITS</strong>' website? The management company's? Thepromoter's? The distributor's?A. Art 81 of Directive 2009/65/EC says that "an up-to-date version of the key investor information shall be madeavailable on the website of the investment company or management company" (<strong>ALFI</strong>'s emphasis). Art 38 of EURegulation 583/2010 simply says "a website", which we interpret to mean that the <strong>KID</strong> may also be published on anyother appropriate website. If the <strong>KID</strong> uses cross-references then they must be "to the website of the <strong>UCITS</strong> or themanagement company" (Art 21 of EU Regulation 583/2010).Q. When a <strong>KID</strong> is updated, should management companies/distributors inform investors?A. No. Art 23(1) of EU regulation 582/2010 only requires that it be "made available promptly", which means that itshould be delivered to investors as a pre-contractual obligation and that it should be published on the practitioner'sweb site.<strong>ALFI</strong> <strong>KID</strong> Q&A, Issue 1314, 11 April25 September 2012 Page 36