The AMF publishes a guide to help make Key Information Documents (KIDs) more accessible to investors

A qualitative study conducted among investors concluded that the information was often too dense and that the vocabulary used was too technical. The KID is little known and rarely used by investors because it is quickly deemed unattractive in form and complex in content. When read with guidance, however, it is considered useful. Most sections are well-received, especially when they include a table and a visual. The main criticisms focus on the section describing the product’s objective and its management strategy.

To help investors better understand the essential characteristics of an investment, the AMF therefore recommends

1. improving the presentation of the DIC to make it more appealing
2. better structuring the “What is this product?” section to make it more educational
3. using clear and less complex language

The gradual implementation of these recommendations is left to the discretion of the Asset Management companies.

To learn more, discover the Guide to help make Key Information Documents (KIDs) more accessible to investors on the AMF website (available in French only). 

* Regulation 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)