Chartered Institute of Stockbrokers (CISI) Professional Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The key investor document (KID) for a UCITS (Undertakings for Collective Investment in Transferable Securities) fund is designed to provide essential information to investors in a clear and concise manner. It aims to facilitate informed investment decisions by outlining the costs associated with the investment.

The correct answer is that the KID must include costs associated with audit fees. Audit fees represent the expenses related to the external auditing of the fund's financial statements, which is a necessary element in ensuring transparency and reliability in the fund's reporting. This level of disclosure helps investors understand the financial health and accountability of the fund.

The other costs mentioned, such as management fees, trading costs, and custodian fees, are also important components of overall fund expenses and are typically included in the KID. However, the specific focus here is on audit fees, which are crucial for the integrity and trustworthiness of the fund's operations and financial reporting. Thus, the inclusion of audit fees in the KID serves to inform investors about the costs tied to ensuring that the fund operates within the legal and regulatory framework, ultimately aiming to protect investor interests.