priips rfp template

PRIIPS rfp

You need to issue a PRIIPs rfp quickly, but don’t know where to start from? Here is how to avoid common mistakes that can cause you a lot of pain further down the line.

As the 1st January deadline is approaching quickly, many investment companies are currently issuing PRIIPs rfps to select an external service provider. Given the complexity of the project it is easy to make communication mistakes that will not allow you to receive meaningful responses. Structure your document carefully as a well thought-out document will save you a lot of time when analysing the proposals and ultimately will determine the overall success of your PRIIPs project.

Here are some best practices when writing a PRIIPs rfp:

1. Explain your current setup

It is like going to the doctor, if you do not accurately describe your symptoms, it is unlikely that you will be given the correct prescription. Therefore, begin by explaining what are the main activities of your company (investment management, private banking, insurance, etc.). Secondly, explain in which capacity you are affected by the PRIIPs regulation: are you a manufacturer of PRIIPs? Or are your non-PRIIPs products wrapped into a PRIIP? Thirdly, provide the volume of your products in scope for PRIIPs, broken down by type (funds, insurance products, structured products, derivatives, etc.), language and country of distribution. This is critical to receive meaningful quotations.

2. Describe your requirements

There are two key questions you need to ask yourself at this stage: a) how quickly do you need the KIDs to be produced? b) How involved do you want to be in the production process? If your PRIIPs are predominantly funds and you have limited time, then a solution fully managed by a service provider is probably what you are looking for. Should you instead need to generate KIDs within minutes (or seconds) for your structured products or derivatives, then you may be better off with a Software as a Service (SaaS). Once you have assessed these points, outline any other specific requirements you may have: template design, components calculation, online storage, translation, dissemination, etc.

3. How will you evaluate the proposals?

What will determine your choice of service provider? price? flexibility? best fit to the requirements? A combination of all of course; but if a factor is particular important to you, state it clearly to exclude service providers that are not a good match.

4. Publish a Q & A

In the RFP, define how service providers can contact you to request clarifications and set a reasonable time limit. After the deadline, publish anonymously all questions and answers. Remember that the more clarity you provide, the more relevant to you will be the proposals you will receive.

5. Favour Word over Excel format

You may be tempted to issue your RFP in a locked Excel format to standardise all answers. However, one size does not fit all and the result is hardly ever satisfactory. Excel files are harder to print and read for you and with restrictive data validation rules you risk to receive non-meaningful answers. It is much better to adopt a more flexible word format that allows each service provider to decide how to best present its solution.

You understand these points, but still don’t know where to start from? That’s no problem, we have created a PRIIPs rfp Word template that you can use as starting point. If you have any questions, do not hesitate to contact us.

Download rfp template
June 9, 2016