ALFI UCITS IV implementation project – KID Q&A Document

"Management Company:", which would make clear to the reader the status of the named entity. We think that thiswould respect Art 3 and be useful in circumstances in which a promoter has employed a third party managementcompany or in which the legal name of the management company is obscure.Q. May the management company name be moved to the Practical Information section in order to keep theKID simple?A. No. Art 4(5) is clear that the management company must be named in the section "Title and Content of Document".Q. If a UCITS is a self-managed SICAV, is it acceptable to say, "The Fund is self-managed" or "A self-managedinvestment company"?A. In addition to the requirement of Art 4(5) of the EU Regulation 583/2010, CESR/09-949 says at Box 1, page 9 that ifa UCITS "has a management company, the name of the management company shall be stated." If there is nomanagement company we think that there is no need to say any more and Art 3(1) says, "No other information orstatements shall be included." We also doubt that investors will understand what the term "self-managed" means.Art 4(8)Q. Is it permitted to extend the title of the section "Risk and reward profile" to become "Current risk andreward profile"?A. No. Art 3(1) says, "No other information or statements shall be included …" The title is prescribed text and there isno provision that would permit it to be extended.Art 4(12) and (13)Q. Would it be sufficient simply to show the date (e.g., December 31, 2010) rather than the full sentence, "Thiskey investor information is accurate as at [the date of publication]"?A. No. The EU Regulation 583/2010 prescribes the full sentence. It is mandatory.Q. Would it be permissible to repeat the date on the second page?A. No. Art 3(1) and Art 4(13) of the EU Regulation 583/2010 provide clear direction that the date should be printed onlyonce, at the end of the "Practical Information" section. The required date is the date of publication, not the last date ofthe calendar year just closed.Q. Should the statements about "authorisation details" and "information on publication" be placed in thePractical Information section?A. Strictly speaking these statements are not part of the Practical Information section but they run consecutively with it.Q. Could the authorisation statement be modified to say, "This fund is authorised in [name of Member State]and regulated by [identity of competent authority]. The key investor information is accurate as at [the date ofpublication]."A. No modification is necessary. The text in the question is simply a concatenation of the statements prescribed byArts 4(12) and 4(13).Q. Art. 4(12) of EU Regulation 583/2010 foresees two statements relating to the authorisation and supervisionof the UCITS, and of the Management Company. Is the second statement only applicable when theManagement Company uses the "European passport"? Is this statement therefore not applicable where theUCITS and its Management Company are incorporated in the same Member State, and supervised by thesame regulator?A. The statement relating to the authorisation and supervision of the management company should only be included inthe KID when it is exercising its passport rights with respect to the UCITS described in the KID.ALFI KID Q&A, Issue 1314, 11 April25 September 2012 Page 9