PRIIPs Background information

What is PRIIPs ?

The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation covers a number of investment products which may be sold to retail investors.

The regulation aims to increase the transparency and comparability of these investment products through the issue of a standardised short form disclosure document, the PRIIPs Key Information Document (KID).

The PRIIPs KID is designed to give retail investors essential information about a PRIIP. This essential information includes the main features of the product, the risks and reward profile and costs associated to the PRIIP.

The PRIIPs KID is a pre-contractual document and the default position is that all investors must be provided with a PRIIPs KID before they enter into the contract.

 

What is in scope?

  • Retail AIFs
  • Life assurance based investment
  • Pensions (those not recognised by national law as retirement products)
  • Retail structured products
  • Derivatives
  • Annuities (where pay-outs are subject to market fluctuations)
  • UCITS Funds (2019)

 

PRIIPs KID contents

  • Header
  • What is this product?
  • What are the risks & what could I get in return?
  • What happens if the PRIIP manufacturer is unable to pay out?
  • What are the costs?
  • How long should I hold it and can I take my money out early?
  • How can I complain?
  • Other relevant information

 

PRIIPS timeline

PRIIPs timeline