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
- Annuities (where pay-outs are subject to market fluctuations)
- UCITS Funds (2019)
PRIIPs KID contents
- 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