ESMA on Responses to Consultation on PRIIPs Key Information Document
ESMA has published responses received to the joint consultation paper of ESAs concerning amendments to the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs). The consultation was launched on October 16, 2019 and the comment period ended on January 13, 2020. ESMA has published responses from several institutions, including asset management, banking, insurance and pension, investment services, and fintech institutions.
ESAs had proposed to amend the existing rules underpinning the PRIIPs KID. The proposed amendments relate to the empowerment in Article 8(5) of the PRIIPs Regulation about the presentation and content of the KID, including methodologies for calculation and presentation of risks, rewards, and costs within the document. The intention was to address issues that have been identified by stakeholders and supervisors since the implementation of the KID in 2018 and make changes to allow the rules to be applied to investment funds that are expected to prepare a KID from January 01, 2022 onward. The consultation paper proposed changes in the following topic areas:
- Illustrations of what the retail investor might receive in return from their investment (performance scenarios)
- Information on what are the costs of the investment
- Specific issues for different types of investment funds
- Specific issues for PRIIPs offering a range of options for investment (Multi-Option Products)
Related Links
Keywords: Europe, EU, Banking, Insurance, Pensions, Securities, KID, PRIIPs, Responses to Consultation, ESAs, ESMA
Previous Article
MAS Amends Notices on Minimum Liquid Asset Requirements for BanksRelated Articles
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
BoE Announces Changes to Validation Rules for Form BTL
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
BCBS Proposes Changes to Process for Reviewing G-SIB Methodology
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.
