25 May 2007

EFAMA comment on CESR call for evidence on UCITS

EFAMA issued its position on CESR’S call for evidence on key investors disclosure for UCITS, focusing primarily on the Request for Assistance submitted to CESR by the Commission. EFAMA complains that the implementation of a simplified prospectus has failed to achieve its aim, particularly due to extensive goldplating at Member State level. The result is a document which in most cases is too long and complicated for retail investors, EFAMA says.

In view of past experiences, EFAMA believes that binding legislative proposals are necessary, and that they should be sufficiently detailed through Level 2 implementing measures, thus ruling out any national additions.

A broad majority of EFAMA members considers that the simplified prospectus should:

Target retail investors;

Provide product information and not investor education;

Allow for comparability (full harmonisation of information to be included but leaving some flexibility to the management company regarding layout and wording);

Focus on the information an investor needs to make a considered investment decision.

Document

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