FROM PROSPECTUS TO KEY INFORMATION DOCUMENT: INFORMATION TRANSPARENCY AS A BASELINE FOR INVESTOR PROTECTION IN THE EU

Since its inception in 1985, the legal framework governing the operations of the undertakings for collective investment in transferable securities (UCITS) has been intricately linked with safeguarding the interests of retail investors. This objective swiftly emerged as a paramount priority for the European legislators in the domain. As an integral part of the protection mechanism, ensuring high degree of transparency is achieved through the implementation of information documents, which succinctly outline the essential characteristics of the financial products being acquired and their issuers. The efficacy of the enforcement of this facet of investor protection within the EU has been challenged on two occasions, leading to the adoption of increasingly sophisticated information documents, and consequently, extending the scope of the regulatory regime applied to such documents to encompass all investment products within the Union.