ALFI UCITS IV implementation project – KID Q&A Document

Art 38(2)(b)Q. Can deemed consent be used, i.e., by embedding some text in the terms and conditions of the web site andposting a notice to the effect that an investor that uses the site will be deemed to have given consent toreceive the KID and the prospectus electronically?A. We think that deemed consent will not be acceptable because Art 38(2)(b) of EU Regulation 583/2010 says that"the investor must specifically consent".Q. Does this requirement create an obligation to keep a record of the consent and if so whose obligation is it?A. We think that a record-keeping obligation is implied by language about explicit consent (Art 38(1)(b) and 38(2)(b))and in any case civil law would require practitioners to be able to provide evidence that the consent was specificallygiven.Q. In respect of "durable medium" and the use of web sites, the EU Regulation 583/2010 says that "theinvestor must specifically consent to the provision of that information in that form." Must that consent begiven in writing by signing a paper form or may it be given by clicking upon a "consent" button on the webpage?A. We think that it would be acceptable for consent to be given in any form that may be evidenced – in writing, byrecorded telephone, via a website, etc.Art 38(2)(e)Q. What does "for such period of time as the client may reasonably need to inspect it" mean?A. At the very least we think that it means for as long as that edition of the KID remains valid, and that it should bereplaced when the next edition is published. We also think that the practitioner should keep archive copies of eachedition of a KID that it produces and make them available to investors. We think that practitioners may choose how tomake them available. For example, that might be upon the investor's request (delivering them in hard copy orelectronically according to the investor's preference) or through an archive section on the practitioner's website.Q. How long should a practitioner archive previous editions of each KID and should they be made available toinvestors via the practitioner's website?A. The civil law in Luxembourg requires companies to keep records for 10 years.Chapter 6Final ProvisionsNo questions have been asked.Annex IRequirements related to the presentation of the synthetic indicatorNo questions have been asked.Annex IIPresentation of chargesQ. Is it permitted to extend the statement, "This is the maximum that might be taken out of your money [beforeit is invested][before the proceeds of your investment are paid out]" to say that part of the charges are paidover to the distributor?A. No. Art 3(1) says, "No other information of statements shall be included …", which would appear to prohibit thisadditional text.ALFI KID Q&A, Issue 1314, 11 April25 September 2012 Page 37