PRIIPs

Packaged Retail Investment and Insurance Products

Packaged Retail Investment and Insurance Products, or PRIIPs, have since the start of 2018 been governed by EU regulations defining their key information documents (KIDs).

The main aim of these rules on KIDs is to improve disclosures and the protection of investors.

 

 

Information contained in KIDs

KIDs are a short standardised summary providing all relevant information to investors. They should contain only information relating to the type and features of the investment product and be distinct from any kind of marketing document

The main features of investment products are:

  • aims and risk profile
  • costs
  • prospective returns

Scope

Products affected

  • Investment funds
  • Structured products
  • Insurance products
  • Life policies with an investment component
  • Derivatives
  • Structured deposits

Products not concerned

  • Directly held shares in companies
  • Directly held sovereign debt
  • Non-life policies
  • Life policies paying benefits in the event of death or incapacity
  • Retirement saving products

Who must provide KIDs?

The regulations on PRIIPs apply to all originators of investment products: banks, insurances, fund managers.

Sample KIDs from Eurex 
http://www.eurexchange.com/exchange-en/resources/regulations/eu-regulations/priips-kids

Sample KIDs from Euronext 
https://www.euronext.com/key-information-document/class-level

Sample KIDs from ICE 
https://www.theice.com/futures-europe/documents/kid

Generic FX Forward KIDs issued by Edmond de Rothschild (Suisse) S.A.
Edmond de Rothschild Suisse-FX Forward Kid (.pdf)