With 10 weeks remaining until PRIIPs is scheduled to enter in force, the formal timeline remains unchanged although speculation about a delay is rife across the financial industry. Hopefully, the EC College of Commissioners meeting on the 9 November will bring more clarity to the question of the PRIIPs implementation timetable.
As of January 1st, 2017, the PRIIPs (Packaged Retail and Insurance-based Investment Products) regulation requires product manufacturers to create, maintain and distribute a large volume of Key Information Documents (KIDs) in plain language for retail investors living in the European Economic Area (EEA) to easily understand and compare products.
SIX offers a one-stop solution that is automated, compliant, and greatly reduces the cost and complexity of PRIIPs KID management.
Create compliant PRIIP KIDs in all EEA languages on demand.
Distribute your regulatory documents with SIX for easy, convenient compliance.
Access our repository of PRIIP KIDs and other documents, complete with archiving.
SIX - 19 October 2016
European Commission to debate PRIIPs delay on 22 November
Investment Europe - 14 October 2016
PRIIPs complexity remains despite uncertainty in the implementation deadline
SIX - 14 September 2016
European Parliament PRIIPs vote leaves no room for relaxation
ECON committee unanimously rejects Commission’s investor protection proposals
Warum Privatanleger bald mehr über «Strukis» wissen
Level 2 Adopted Commission Delegated Regulations
Commission Delegated Regulation with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents
Final draft RTS dated 31 March 2016
ESAs, Final Draft RTS with regard to presentation, content, review and provision of the key information document, including the methodologies underpinning the risk, reward and costs information
FCA Handbook disclosure rules
CP16/18: Changes to Handbook disclosure rules to reflect the direct application of PRIIPs Regulation
The EU Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products is also known as PRIIPs. It was approved by the European Parliament and the Council on 26 November 2014. The regulation is the first significant milestone in new investor protection legislation introduced by the EU in the wake of the 2008 financial crisis.
KIDs for PRIIPs is part of a drive by the European Union to increase transparency and efficiency in the retail investment market. The EU wants to help consumers (i.e. non-professionals) better understand the investments they are buying and make the retail investment market easier for consumers to navigate as a result.
The Key Information Document (KID) is a 3-page document outlining the investment’s risks and costs. Acting as a kind of quick reference guide to the PRIIP, KIDs must follow strict design and content guidelines, be produced in at least one official language of each country where the product is marketed and be regularly reviewed and updated.
Any retail investor domiciled in an European Economic Area (EEA) must be provided by institutions (including non-EU domiciled banks and insurance companies) that sell retail investment products.
The responsibility for creating and maintaining the document lies with the product manufacturer. Meanwhile, retail advisors who sell these products to end consumers are obliged to ensure that their client receives the documents in the pre-sale phase. This rule applies even for execution-only online environments like mobile online banking application, where an advisor is not physically present.
PRIIPs will enter in force on 31 December 2016, meaning that financial institutions will be required to produce and distribute compliant KIDs from 1 January 2017.
The regulation affects any investment products for retail clients that are “packaged” with exposure to at least one underlying asset (e.g. structured products and OTC or securitized derivatives) as well as insurance investment products. In total, many millions of instruments are affected.