law of 20 December 2002 - Alfi

CSSF CIRCULAR 03/122 of 19 December 2003 concerning Clarifications onthe simplified prospectusLuxembourg, 19 December 2003To all Luxembourg undertakings for collective investment and to those who act in relation tothe operation and supervision of such undertakings.CSSF CIRCULAR 03/122Concerns:Clarifications on the simplified prospectus.Ladies and Gentlemen,The purpose of this circular is to provide more detailed information on the simplified prospectusand in particular on the interpretation of certain elements of information in schedule C attachedto the law of 20 December 2002 relating to undertakings for collective investment (the “law of20 December 2002”).The circular’s purpose is notably to describe three elements of information of the simplifiedprospectus mentioned in schedule C, namely:– the UCITS’ objectives, the UCITS’ investment policy and a brief evaluation of the UCITS’risk profile,– the historical performance of the UCITS,– the other possible expenses and fees.It further sets out the authorisation procedure of the CSSF in relation to the simplifiedprospectus.I. IntroductionArticle 109(1) of the law of 20 December 2002 relating to undertakings for collectiveinvestment obliges undertakings for collective investment in transferable securities(UCITS) subject to Part I of such law to publish a simplified prospectus.UCITS which remain governed by Part I of the law of 30 March 1988 relating to undertakingsfor collective investment until 13 February 2007 at the latest, are not obliged byLuxembourg law to publish a simplified prospectus. However, if any such UCITS intendsto publish a simplified prospectus, it has to comply with the requirements imposed byannex I, schedule C, for the simplified prospectus of UCITS subject to Part I of the law of20 December 2002.Pursuant to Article 112 of the law of 20 December 2002, the key elements of the simplifiedprospectus must be kept up to date.A distinction must be made between:a) the sporadic updates which must be made upon changes of any key elements of thefull prospectus and/or the management regulations / articles;b) the periodical updates which must be made at least once a year and which concernin particular the following elements: the historical performance, the total expense ratioand the portfolio turnover rate.201