There is the duty to produce a KID (key information document) if a financial instrument to retail clients is offered (Art. 58 FinSA).
The KID contains the information essential for investors to make a well-founded investment decision and a comparison of different financial instruments. It particularly contains:
- the name of the financial instrument and the identity of the producer;
- the type and characteristics of the financial instrument;
- the risk/return profile of the financial instrument, specifying the maximum loss the investor could incur on the invested capital;
- the costs of the financial instrument;
- the minimum holding period and the tradability of the financial instrument;
- information on the authorisations and approvals associated with the financial instrument.
Furthermore, the KID has to be a stand-alone document (clearly distinguishable from advertising) and easy to understand.
Note: Securities offer in the form of shares, including share-like securities allowing for participation rights, such as participation certificates, dividend rights certificates and non-derivative debt instruments, do not need a KID.