Federal Council extends transitional period for key information document for complex financial instruments

During its meeting on 3 December 2021, the Federal Council decided to extend by twelve months the transitional period for the preparation of key information documents (KIDs) for complex financial instruments.

The Financial Services Act (FinSA) entered into force on 1 January 2020. Among other things, it stipulates that the issuers of more complex financial instruments which are offered to private clients must prepare a key information document (KID) as of 1 January 2022. This transitional period is in line with the current regulations in the EU for the replacement of the UCITS KIID by the PRIIPS KID.

In summer 2021, the European Commission proposed to the Council of the European Union and the European Parliament to replace the UCITS KIID with the PRIIPS KID six months later than originally planned, i.e. with effect from 1 July 2022. Both the Council and the European Parliament subsequently agreed to an extension in November 2021, but for twelve months rather than six.

In order to ensure equal treatment, but also to avoid a disproportionate burden on issuers of financial instruments and to avoid confusing investors, the Federal Council likewise decided to extend the current transitional period for the preparation of key information documents for all financial instruments by twelve months. Until 31 December 2022, key investor information documents (KIIDs) or simplified prospectuses in accordance with the previous collective investment schemes legislation may continue to be prepared and published for securities funds and other funds for traditional investments, real estate funds and structured products, instead of key information documents (KIDs). This extension of the transitional period requires amendments to Articles 110 and 111 of the Financial Services Ordinance (FinSO) and Article 144 paragraphs 1 and 5 of the Collective Investment Schemes Ordinance (CISO).

Last modification 03.12.2021

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