Asset managers accused of breaching EU disclosure rules

619 funds breached KIIDs rules

At least 30% of large actively managed UCITs equity funds do not comply with European Union disclosure rules, according to investor rights campaign group Better Finance.

The research, which analysed 2,033 EU-domiciled funds with at least €50m assets under management and fees of over 0.65%, found 619 funds (30%) did not comply with KIID disclosure rules by failing to provide the required benchmark information in fund documents.  The KIID, which came into effect in 2012, aims to provide investors with a transparent and succinct fact sheet of critical information about the fund. Of the 619 funds found to be in breach of one or more of their legal obligations, 98 were said to be "major offenders", meaning their KIIDs clearly indicate an index but do not p...