COLL 4.7 Key investor information and marketing communications

1This section applies to an ICVC, an authorised fund manager of an AUT, ACS2 or ICVC and any other director of an ICVC where, in each case, the AUT, ACS2 or ICVC is:6

1. (1)

   a UCITS scheme; or6

2. (2)

   a non-UCITS retail scheme that is offered to retail clients if the authorised fund manager or ICVC draws up a NURS-KII document instead of a key information document for the scheme.6

1. (1)

   An authorised fund manager must6 draw up a short document in English containing key investor information6 for investors:6

   1. (a)

      in each UCITS scheme which it manages (a key investor information document); and6

   2. (b)

      in each KII-compliant NURS which it manages (a NURS-KII document).6

2. (2)

   The words "key investor information" must be clearly stated in the key investor information document and NURS-KII document6.

3. (3)

   Key investor information must include appropriate information about the essential characteristics of the UCITS scheme or KII-compliant NURS6 which is to be provided to investors so that they are reasonably able to understand the nature and risks of the investment product that is being offered to them and, therefore, to take investment decisions on an informed basis.

4. (4)

   Key investor information must provide information on the following essential elements in respect of the UCITS scheme or KII-compliant NURS6:

   1. (a)

      identification of the scheme5 and that the FCA is the competent authority of the scheme4;

   2. (b)

      a short description of its investment objectives and investment policy;

   3. (c)

      past performance presentation or, where relevant, performance scenarios;

   4. (d)

      costs and associated charges; and

   5. (e)

      risk/reward profile of the investment, including appropriate guidance and warnings in relation to the risks associated with investments in the scheme.

5. (5)

   The essential elements referred to in (4) must be comprehensible to the investor without any reference to other documents.

6. (6)

   A key investor information document or NURS-KII document6 must clearly specify where and how to obtain additional information relating to the proposed investment, including but not limited to where and how the prospectus and the annual and half-yearly reports can be obtained on request and free of charge at any time, and the language in which that information is available to investors.

7. (6A)

   4A key investor information document must also include:

   1. (a)

      a statement that the details of the up-to-date remuneration policy are available by means of a website, including, but not limited to, the following:

      1. (i)

         a description of how remuneration and benefits are calculated; and

      2. (ii)

         the identities of persons responsible for awarding the remuneration and benefits, including the composition of the remuneration committee, where such a committee exists; and

   2. (b)

      a reference to that website, and that a paper copy of the website information will be made available free of charge upon request.

8. (6B)

   A NURS-KII document must also include a statement that the details of the up-to-date remuneration policy will be made available free of charge upon request, including the following:6

   1. (a)

      a description of how remuneration and benefits are calculated; and6

   2. (b)

      the identities of persons responsible for awarding the remuneration and benefits, including the composition of the remuneration committee, where such a committee exists.6

9. (7)

   Key investor information must be written in a concise manner and in non-technical language. It must be drawn up in a common format, allowing for comparison, and must be presented in a way that is likely to be understood by retail investors.

10. (8)

    [deleted]8

    6

6The following must comply with COLL Appendix 2R (Modifications to the KII Regulation for KII-compliant NURS), which contains a modified version of the KII Regulation for KII-compliant NURS, when producing a NURS-KII document:

1. (1)

   an authorised fund manager of a KII-compliant NURS; and

2. (2)

   an ICVC that is a KII-compliant NURS.

The key investor information document and the NURS-KII document6 must:

1. (1)

   constitute pre-contractual information (see COBS 14.2.1A R (Provision of key investor information document or NURS-KII document6));

2. (2)

   be fair, clear and not misleading; and

3. (3)

   be consistent with the relevant parts of the prospectus.

1. (1)

   An authorised fund manager must keep up to date the essential elements of:6

   1. (a)

      the key investor information document for each UCITS scheme which it manages; or6

   2. (b)

      the NURS-KII document for each KII-compliant NURS which it manages.6

2. (2)

   An authorised fund manager must file the key investor information document for each UCITS scheme or the NURS-KII document for each KII-compliant NURS6 which it manages, and any amendments thereto, with the FCA.

3. (3)

   An authorised fund manager of a feeder UCITS or feeder NURS6 must, in addition to (1) and (2), file the key investor information of its master UCITS or the NURS-KII document of its qualifying master scheme6, and any amendments thereto, with the FCA.