A Key Facts document isn’t the full terms and conditions of the investment.
Instead, this document is designed to give you the main information you need to make an informed decision, although you might also need to refer to the full terms and conditions.
When you buy an investment fund you’ll be offered either a Key Investor Information Document (KIID) or a Key Information Document (KID), telling you what you need to know about the fund and how it works.
For an investment product the document will cover things such as:
- how the product works
- what you’re committing to
- the risks and possible benefits.
A separate document called a key features illustration might also be provided which will show:
- how the product might perform (given certain assumptions), although it’s unlikely to show how the product may also depreciate
- information on some of the charges you’ll pay, including the cost of any commissions and how these might affect what you get back. Note that some charges, such as the transaction costs, may be omitted, so you won’t be getting a comprehensive list of the charges applied.
The company also needs to tell you about:
- the process to follow if you want to make a complaint
- your right to cancel the product, and if there are any fees for doing so
- compensation that might be available from the Financial Services Compensation Scheme if the firm cannot meet its liabilities in respect of the product (if applicable)