TER and RIY to be shown in unit trust prospectus

The Financial Services Authority (FSA) says under the simplified prospectus rules, all collective investment schemes, such as unit trusts and OEICs, and which carry a Ucits certificate allowing funds to be marketed in other EU countries will be required to publish several pieces of vital information in a ‘Q&A’ format, including the charging structure of such investments. Expanding the key feature document concept, the FSA says under the terms of the Ucits III Directive, the simplified prospectus’ will have to carry a total expense ratio (TER) figure, however, this will not include front-...