Extension of the preparation of a Key Information Document to all collective investments: the AMF updates its policy

Context

Since 1 January 2018, the PRIIPs Regulation has required the preparation and publication of a KID for packaged retail and insurance-based investment products, before they are made available to retail investors. The content and presentation of this KID are standardised by this Regulation and its Delegated Regulation (EU) 2017/653 as amended by Regulation (EU) 2021/2268. However, UCITS and certain alternative investment funds (AIFs) that prepare and publish a Key Investor Information Document (KIID) in the format stipulated by the UCITS Directive were temporarily exempted from this obligation.

Since 1 January 2023, these UCITS and AIFs no longer benefit from this exemption and must prepare and publish a KID in accordance with the PRIIPs Regulation. This document replaces the KIID (Key Investor Information Document) for information intended for non-professional clients. For the information for professional clients, funds open to retail investors can choose to keep a KIID in the format stipulated by the UCITS Directive or to change to the KID in the format stipulated by the PRIIPs Regulation.

These changes have resulted in the amendment of the obligation for publication of a KID/KIID by UCITS and AIFs, as follows:

* Subject to certain conditions, the units or shares of AIFs open to professional investors can be subscribed to or purchased by retail clients (minimum investment of €100,000, subscription via a management mandate, etc.).

Policy update

The AMF has updated its asset management policy to take these regulatory changes into account.

For the purpose of investor protection and to provide support for professionals, the AMF extends to the KID those elements of policy applicable to the content of the KIID which prove relevant and non-redundant, and which do not contradict the requirements of the European texts. These documents are, for example, Positions and Recommendations relating to the name of the UCITS or AIF, those relating to the presentation of information describing the investment management objective and policy, and those relating to past performance.

However, the AMF maintains its existing policy regarding the KIID for the information of professional clients, when the asset management company does not opt for the preparation of a KID.

With a view to a good understanding of the changes made to the policy, some of these documents, in particular the instructions and templates for regulatory documents, are also published as revision marks.