PRIIPs

What is PRIIPs?

The regulation on Packaged Retail Investment and Insurance-based Investment Products (hereinafter referred to as PRIIPs) will come into effect on 1 January 2018. The objective of this legislation is to ensure more transparency, confidence and consistent information. This is achieved by offering a key information document before any so-called PRIIPs are purchased. A PRIIP is an investment or insurance product with an investment component sold to retail investors. Examples are investment funds, life insurance contracts with an investment component, structured products, structured deposits and derivatives.

 

What is the Key Information Document?

The PRIIP regulation states that providers of PRIIP products must offer key information on these products to the customer. This information is included in the Key Information Document (KID). This document has a fixed structure and contains the following components of your product: a general explanation, a detailed explanation, what will happen if the provider is unable to pay you, the cost specifications, the appropriate retention period and where you can file a complaint. This document helps investors to compare and understand these products. 

The obligation to send a KID applies to customers within the Advice and Execution Only service concepts.

Click here  for more information on the PRIIPS regulations.