EC Publishes Guidelines on Key Information Documents for PRIIPs
EC adopted guidelines that will further help providers and distributors of investment products, funds, and investment-insurance policies design their Key Information Document (KID). The guidelines will ensure a smooth implementation of the PRIIPs Regulation (EU Regulation No. 1286/2014) by retail financial services sectors before it enters into application on January 01, 2018.
The KID, introduced by the Regulation on Key Information Documents for Packaged Retail and Insurance-Based Investment Products (PRIIPs), is a standardized and simple document that has the objective of presenting the main features of an investment product in a consumer-friendly manner. This is yet another step by the EC to make today's complex investment environment more understandable for consumers, while increasing their protection, along with their trust in the financial services industry. Looking ahead, the ESAs are preparing Q&As, which will further clarify how the PRIIPs information rules need to be applied to cater for transparency while ensuring that consumers are not overburdened with information not needed in their decision-making. In particular, the Q&As will address a wide range of technical aspects in relation to, for example, derivatives or multi-option products offering to retail investors multiple underlying investment options.
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Guidelines on KIDs for PRIIPs (PDF)
Keywords: Europe, EC, Insurance, KID, PRIIP, Guideline
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