On 8 March 2017, the European Commission adopted a Commission Delegated Regulation, including Annexes (PRIIPs RTS), supplementing the Regulation on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs Regulation). The PRIIPs RTS provide for regulatory technical standards regarding the presentation, content, review and revision of KIDs and the conditions for fulfilling the requirement to provide KIDs.

The recently adopted PRIIPs RTS are a revised version of the respective delegated regulation adopted by the European Commission on 30 June 2016 and aims to address the concerns expressed by the European Parliament in September 2016. Key amendments to the PRIIPs RTS are:

  • the clarification on the treatment of multi-option products (MOPs) which have UCITS or non-UCITS funds as underlying investment options, according to which a PRIIP manufacturer can use the key investor information document (KIID) prepared in accordance with the UCITS Directive to comply with the PRIIPs KID disclosure requirements until 31 December 2019;
  • the alignment of the comprehension alert with complex products under MiFID II; and
  • an amendment to the performance scenarios where the option to provide a fourth scenario has been replaced by a mandatory requirement to add a stress scenario.

What’s next?

The European Parliament and European Council now have a period of three months (extendable by additional three months) to review the PRIIPs RTS. If neither of them objects, the PRIIPs RTS will enter into force twenty days after they are published in the Official Journal of the EU. The PRIIPs RTS will apply from 1 January 2018.

We, and our sister company Arendt Regulatory & Consulting, are available to discuss next steps and advise on the impact on your business, both from a legal and regulatory perspective.

The PRIIPs RTS may be downloaded here.

The Annexes to the PRIIPs RTS may be downloaded here.

YOU MIGHT ALSO WANT TO DISCOVER

18/04/2019
MiFID 2 third country access: the Luxembourg temporary regime now clarified by the CSSF

On 12 April 2019, the CSSF released its Circular letter 19/716 on the provision in Luxembourg of investment services or performance of investment activities and ancillary services in accordance with Article 32-1 of the law of 5 April 1993 on the financial sector, as amended (the...

Read More_
Financial reporting requirements for funds
enhance
your
experience
unfortunately, you can not personnalize your browsing on this page

Would you like to configure your browsing experience at arendt.com?

Let us know your profile and favourite topics

You are

Banking and Financial Services

Fund Industry

Private Sector

Private Wealth

Public Sector