The UK’s Financial Services Authority has laid out its final rules and guidance for implementing European requirements on product disclosure...

The UK’s Financial Services Authority has laid out its final rules and guidance for implementing European requirements on product disclosure information for UCITS to be marketed in other EEA countries.

The product information will be contained in a new document known as the Simplified Prospectus. EU rules require this document to be offered to anyone who wants to invest in a collective investment scheme that holds a UCITS certificate.

The FSA's approach builds on the existing UK regime for investment product information - the Key Features document - by adding new information requirements only where it is necessary to meet the revised EU standards.

The new EU information requirements include:
·a "Total Expense Ratio" (TER) figure showing the costs and charges of the fund. The figure will not take account of front-end charges, exit costs or certain fund expenses such as dealing costs.
·a "Portfolio Turnover Rate" (PTR) figure, to reflect the volume of dealing within the fund; and
·the historic performance of each UCITS fund showing up to ten years' annual returns.