Key KIID Challenges

KIID compliance appears straightforward, yet it has far-reaching implications for asset managers and willpresent many challenges for those striving to comply in a short timescale.

• Large asset managers may need to produce thousands of KIIDs each year. The KIID will, in all likelihood, result in the production and dissemination of far more documents than the Simplified Prospectus.
• Some fund managers doubt that the KIID space limitations will allow them to fully explain the risks and processes involved with a product, so the fund prospectus remains a key document. 
• The scale and cost of KIID translation is a major concern for the majority of asset managers affected by UCITS IV KIID regulations.
• The KIID contains new requirements which fund managers will have to comply with. Urgent action is needed to adapt operations and systems to accommodate these requirements.
• The KIID may change the way in which funds are perceived. Retail investors may start to differentiate between products on the basis of the new risk indicators, leaving some managers with gaps in their product ranges.
• UCITS IV is designed to introduce a level playing field for fund distribution across Europe, yet with tax and regulatory differences remaining within and between countries, it may be difficult for its measures to achieve maximum impact.

 
Equipos understands these challenges and we have a proven, quick-to-implement solution based on many years experience in international investment reporting.

For clients needing more hands-on assistance with KIID implementation, the Equipos KIID Consulting team offers a range of services, from advice and support through to hands-on project management.

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