On 8 March 2017, the European Commission adopted a new version of the regulatory technical standard (RTS) for PRIIPs, following a rejection of the last version on some specific points by the European Parliament. The new version is now under scrutiny by the European Parliament and the Council. The RTS would then become law and we have been advised by EIOPA that this could happen by the end of April 2017. Thereafter, the European Supervisory Authorities will publish Q&A material to support the implementation of the PRIIPs KID. The Regulation and the RTS apply from 1 January 2018.
The Commission's amendments to the Delegated Regulation concern multi-option PRIIPs, performance scenarios, comprehension alert and presentation of administrative costs in relation to biometric components of insurance-based investment products.
Significant detail is contained in the annexes about the production of KIDs which cover the following:
- Template for the key information document.
- Methodology for the presentation of risk.
- Presentation of SRI (summary risk indicator).
- Performance scenarios (favourable, moderate, unfavourable and stress).
- Methodology for the presentation of performance scenarios.
- Methodology for the calculation of costs.
- Presentation of costs.
OAC is helping firms to meet the requirements for their KIDs with a combination of advisory, calculation and compliance services.
For more information
Claire Lightwood FIA
Professional Services, Account Manager
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