PRIIPs
The Packaged Retail Investment and Insurance Products (PRIIPs) regulation requires a three-page Key Information Document (KID) when financial products (such as funds, structured products or unit-linked insurances) are sold to retail investors. The KID’s objective is to provide essential and standardised information to investors to allow them to make an informed investment decision. In essence, the PRIIP KID is the successor of the UCITS Key Investor Information Document (KIID), and is meant to replace it in the near future.
Before switching from the UCITS KIID to the PRIIP KID, fund managers want to ensure that the information provided is relevant and non-misleading. Due to the PRIIPs Regulation’s large scope, this is no easy endeavour. In our opinion, both goals cannot be fully achieved simultaneously and some trade-off will have to be found between meaningful and comparable information. This conundrum can only be solved by the outstanding review of the PRIIPs Regulation. In the meantime, EFAMA is providing industry feedback on how to best transition funds from the UCITS KIID to the PRIIP KID, ensuring that there is sufficient time for such a transition.
EFAMA’S statement on the revised PRIIP KID of April 2020
Joint letter on the ongoing review of the PRIIPs RTS
EFAMA's response to the ESAs' joint consultation paper concerning amendments to the PRIIPS KID
EFAMA welcomes final agreement on legislation facilitating cross-border distribution of funds
We welcome yesterday's vote by the European Parliament plenary, formally adopting the trilogue agreement on the Commission's initiative to remove cross-border barriers to the distribution of investment funds.
This marks a decisive recognition of the need to postpone the application of the PRIIPs disclosure regime for UCITS by two years, in light of the regime's documented shortcomings. It also allows the European Commission more time to conduct a thorough review of the same within one year.
EFAMA welcomes the vote of the European Parliament's ECON amending proposal on cross-border distribution of funds
The Committees vote confirmed important amendments to the Commissions original proposal, i.e. extending the premarketing definition to established EU AIFs and removing the numerical thresholds conditioning the de-notification of funds from host jurisdictions.
Infographic | The challenges of replacing UCITS KIIDs with PRIIP KIDs
In support of our call for additional time to implement the PRIIPs rules, we have produced an infographic that summarises the challenges our members face replacing UCITS KIIDS with PRIIP KIDs. The infographic shows the many entities involved in the process and the steps required to prepare a PRIIP KID. Feel free to make use of this infographic.
3 questions to Sheila Nicoll and Alexander Schindler on the Capital Markets Union High Level Forum
Q #1 What is the difference of the High-Level Forum report to previous initiatives on the Capital Markets Union? What is different this time around?
Investment Funds Distributor Due Diligence Questionnaire
Funds face unique challenges in performing intermediary oversight, and especially so because of MiFID II requirements, changing regulatory landscapes, and the absence of an industry agreed-upon standard between funds and their distribution channels. To help address these challenges, a dedicated working group developed a uniform due diligence questionnaire (DDQ) that will serve as the standard for investment funds (UCITS and AIFs) in performing onboarding and ongoing oversight of distribution channels.
