Updated ESMA Q&A on Key Investor Information Document (KIID) for UCITSOn 26 March 2015, ESMA published an updated version…

On 26 March 2015, ESMA published an updated version of its Q&A on the KIID.

In summary, the new question/answer 4g on past performance confirms a position taken in the past by the CSSF on the use of past performance data in cases of mergers.

In a situation where a receiving UCITS has no performance history, the past performance of the merging UCITS can be used in the KIID of the receiving UCITS, subject to an assessment by the competent authorities of the receiving UCITS that the merger does not affect the UCITS' performance.

ESMA illustrates its position by stating that, in its opinion, the performance of a UCITS may be affected by a change to the investment policy or a change of investment manager. A note indicating that the past performance is the performance of the merging UCITS should be included in the updated KIID.

On this point too (i.e. KIID update) and in view of the application of the UCITS V Directive, the next update due in February 2016 will be a good opportunity to reflect the new remuneration requirements (see Article 1 (14) b) of UCITS V Directive, i.e. Directive 2014/91/EU, which amends Article 78.4 of Directive 2009/65/EC).

2. Depositary - Compliance with Circular 14/587

In its Circular 15/608, the CSSF has extended the deadline for compliance with Circular CSSF 14/587 until 18 March 2016 (instead of 31 December 2015) in order to align it with the application date of the UCITS V Directive. In its Circular 15/608, the CSSF has also informed that its Circular 14/587 will be amended as of 18 March 2016 to reflect the UCITS V Directive and relevant delegated acts.

More information on the content of Circular 14/587 as amended by Circular 15/608 is available in the article "CSSF Circular 14/587 on UCITS depositaries in a nutshell (updated with Circular 15/608)" published on our website.