Key Investor Information Documents (KIID) are still heaving with jargon, despite being required to use language that is "clear, succinct and comprehensible", a survey among advisers suggests.
Two thirds of advisers questioned by KIID solution provider Kii Hub said fund groups weren't doing enough to make KIIDs jargon free with "most or all" KIIDs still using technical language.
Only one in three advisers said that KIIDs were easier to understand than the Simplified Prospectuses they replaced.
However, the majority of the 110 respondents to the survey agreed that KIIDs were generally clearer and more concise than other fund documents.
Since July 2012, the asset management industry has been required to offer KIIDs to investors in every share class of every UCITS fund in Europe, ensuring that "the language is clear, succinct and comprehensible" and "the use of jargon is avoided".
Kii Hub director of technical fund marketing Ian Overgage said, "Fund documentation has tended to be full of industry jargon and many groups have found it difficult to change that mind-set for KIIDs.
"If fund groups produce more of their documents in plain language, this would help with investors' understanding and improve confidence."
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