FD Reporting Luxembourg – What does PRIIPS stands for?

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 standardized 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 default position is that all investors must be provided with a PRIIPs KID before they enter into the contract.

PRIIPs KID Samples

The PRIIPs legislation impacts on a wide variety of retail products, and has to be complied by 31 December 2016.  KID layout and content may vary depending upon your product type.

PRIIPs KID sample РInsurance Products (MOPs)

A PRIIPS manufacturer that offers Underlying Investment Options (such as UCITS Funds, non-UCITS funds, etc.) is required to provide information regarding both the wrapper and the individual underlying products.

There are two options available to cater for those. First one being the Combination KID, a combination of the main PRIIPs + the underlying investment option. The combination is required for each available option. Second one being a Generic KID for the wrapper and an individual PRIIPs KID for each underlying investment option as well as supplementary information document with information on one or more underlying investment options.

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