Consultation on the addendum to CESR's consultation paper on the format and content of Key Information Document disclosures for UCITS (Ref. CESR/09-552)

CESR's proposals follow over two years of work which have included extensive consultation with stakeholders. In developing its advice, CESR has also placed great emphasis on the outcome of the consumer testing exercise carried out by the Commission. The proposed disclosure, to be known as the Key Information Document (KID), will replace the current Simplified Prospectus that was introduced in 2002 and aims at increasing investor protection and convergence across Europe.

At the time of the publication of the consultation paper, CESR had not yet finalised some elements of the proposed methodology. In particular, the proposal still needed to be fine-tuned with respect to:

1) the definition of upper and lower bounds for the volatility intervals ('buckets').

2) the detailed explanation of the risk classification process for structured funds.

This addendum complements the consultation paper by including an explanation of CESR's proposals on the items above.