UCITS IV: Time for change

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PwC in conjunction with EFAMA (the European Fund and Asset Management Association) are conducting a series of surveys in relation to the implementation of the UCITS IV Directive. The objective of these surveys is to ascertain the intentions of the Asset Management industry and the challenges it faces with regards UCITS IV.

Our first survey focuses on the replacement of the Simplified Prospectus with the Key Information Document (the "KID“). Within UCITS IV, the KID is one of the few compulsory measures, and on the face of it compliance with the UCITS IV requirements appears straightforward. Yet the KID has far more wide-reaching implications than it appears that many asset managers currently realise. Our survey canvassed a broad cross section of asset managers, and it clearly shows that many have not yet not fully assessed the implications relating to the production of the KID.

Our survey looks at responses to some of the following key issues:

• Whether the industry thinks the KID is a step in the right direction?
• Whether the industry thinks the KID will help create a level playing field for funds in Europe?
• What the industry's view is on the synthetic risk and reward indicator?
• Which requirements the industry deems the most challenging?