IFS: Clearstream position with regard to KIID distribution
Articles 80(1) and 80(2) of the UCITS Directive1 set out the obligations of investment companies and management companies to deliver to investors the Key Investment Information Document (KIID), as defined in Commission Regulation 583/20102.
A table, prepared by the Association of the Luxembourg Fund Industry (ALFI)3 and summarising the requirements relating to KIID, is presented in the attached spreadsheet.
Clearstream4 does not distribute funds, and thus is under no obligation to distribute the KIID to its customers.
Clearstream routes investment fund orders issued by its customers in the name and on behalf of its customers. The Clearstream customer (the Order Issuer), principal in the order transaction, is always disclosed to the Order Receiver by its legal name, by its official BIC address or by another agreed form of disclosure.
Clearstream position pursuant to Article 80(1)
Clearstream is not in a position to verify whether the Order Issuer is “acting on behalf of" and under the "full and unconditional responsibility" of the investment company or management company.
Only the investment company or management company (or the Transfer Agent, where relevant) is able to identify whether orders routed through Clearstream by specific Order Issuers fall under Article 80(1).
Clearstream position pursuant to Article 80(2)
Clearstream only accepts financial institutions as Order Issuers, which excludes any retail investors.
If Clearstream is notified by an Order Issuer that the Order Issuer is acting as an investor, Clearstream will then advise the relevant Order Receiver accordingly.
Notes on the implementation of Art 80 of the UCITS Directive
The table in the attached spreadsheet considering the implementation of Art 80 of the UCITS Directive divides the industry into three segments:
- Investment companies, management companies and third parties acting under their "full and unconditional responsibility";
- Intermediaries who do not act under an investment company's or management company's "full and unconditional responsibility" and other parties who include UCITS in their products; and
- Infrastructure companies and others.
For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.
1. Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (implemented in Luxembourg by Articles 161(1) and 161(2) of the law of 17 December 2010).
2. Commission Regulation (EU) No 583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards key investor information and conditions to be met when providing key investor information or the prospectus in a durable medium other than paper or by means of a website.
3. ALFI UCITS IV implementation project, Key Investor Information Document Q&A Issue 13, Luxembourg, 11 April 2012, page 53.
4. Clearstream refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
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