The Simplified Prospectus (SP) is a disclosure document designed for retail clients buying units in a UCITS, to provide them with the information they need to make informed decisions about whether to invest in a particular fund or product. The full Prospectus is considered too long and technical for the average investor.
It is accepted that the current SP is ineffective and needs improvement for the average investor to be able to understand and use it. There have also been problems with the consistency of the information contained within SPs, making it harder for consumers to compare between funds, particularly where cross-border sales are involved.
In its UCITS White Paper, the Commission proposed developing a new document which is practical and user-friendly. CESR is now keen to seek the views of consumer representatives to better understand what key investor information (KII) can better meet consumer needs.
The questions and examples below are intended only as a prompt to think about the aspects we need to consider. We are keen to hear any of your concerns or issues about the SP, even if not covered here.