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
PRA Consults on Implementation of Certain Provisions of CRD5
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA Report Identifies Key Financial Stability Risks for Insurers
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA Publishes Risk Dashboard for First Quarter of 2020
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA Issues Updates on Stress Test Exercise for Banks in EU
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA Proposes Guidance Related to Matching Adjustment under Solvency II
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS Issues Guidance on Dividend Distributions by Banks
MAS published a statement guidance on dividend distribution by banks.
APRA Updates Guidance on Capital Management for Banks
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB Report Reviews Macro-Prudential Framework and Tools in Germany
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA Urges Firms to Finalize Preparations for End of Brexit Transition
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB on Operational Continuity in Resolution and FMI Contingency Plans
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.
