According to the report, 70% of fund management groups fear the cost of producing the KIID will exceed the current cost of producing the simplified prospectus, with 50% of these respondents expecting the increase to be by as much as 20%.
The distribution of the new documents is also of concern to fund management groups, with 75% concerned about adequately distributing the documents and 35% worried about getting the KIID to the end consumer through their current distribution networks.
There was some good news for the KIID however, as 70% of respondents believe it will bring increased comparability of products and ease of understanding for investors.
Bob Kneip, CEO of KNEIP said: “The introduction of the KIID is a major issue. There are questions around increased costs and concerns around implementation.
“However, the KIID is driven by market need as it offers standardisation, uniformity and transparency through common processes, materials, and presentation. Ultimately we think that adopting the KIID will in fact end up to be more efficient – both from an operations and cost perspective.”
