AI Summary of Article 69
The prospectus must deliver essential information enabling investors to make informed decisions regarding proposed investments, focusing particularly on the associated risks. It should present a straightforward explanation of the fund's risk profile and detail or summarise its remuneration policy. This is crucial for transparency and accountability.
Furthermore, the annual and half-yearly reports must include comprehensive financial statements and remuneration details to provide investors with insights into the fund's performance and the governance of its compensation practices. ESMA is tasked with ensuring consistency in these regulations through the development of technical standards and guidelines.
Article 69
1. The prospectus shall include the information necessary for investors to be able to make an informed judgement of the investment proposed to them, and, in particular, of the risks attached thereto.
The prospectus shall include, independent of the instruments invested in, a clear and easily understandable explanation of the fund's risk profile.
The prospectus shall include either:
(a) the details of the up-to-date remuneration policy, including, but not limited to, a description of how remuneration and benefits are calculated, the identities of persons responsible for awarding the remuneration and benefits including the composition of the remuneration committee, where such a committee exists; or
(b) a summary of the remuneration policy and a statement to the effect that the details of the up-to-date remuneration policy, including, but not limited to, a description of how remuneration and benefits are calculated, the identity of persons responsible for awarding the remuneration and benefits, including the composition of the remuneration committee where such a committee exists, are available by means of a website – including a reference to that website – and that a paper copy will be made available free of charge upon request.