On 27 January 2020 the CSSF published a communication on benchmark disclosures in the key investor information document (the "KIID") of UCITS (the “Communication”).
The Communication refers to an update to ESMA Questions and Answers on the application of the UCITS Directive published on 29 March 2019 and providing clarification on benchmark disclosure for UCITS (the “Updated Q&A”). More specifically, the Updated Q&A clarified information on benchmark and past performance disclosures which need to be included UCITS KIIDs. For further information on the changes introduced by the Updated Q&A please see our previous article.
ESMA required changes to the KIID to be implemented as soon as possible or by the next KIID update following the publication of the Updated Q&A. The CSSF’s Communication clarifies that the necessary changes in the KIIDs must be applied by 19 February 2020. Moreover, following changes to a KIID, it needs to be ensured that updated information is disclosed in the prospectus and that both documents are aligned. In case of changes, the prospectus including revised benchmark disclosures should be filled with the CSSF by the end of 2020 or together with its next revision, whichever occurs earlier.