EUROPE: EU Commission Publication: FAQ’s on the KIID for Packaged Retail Investment Products

Tuesday July 3 2012

Funds-Axis would like to draw your attention to a recent EU Commission publication answering some frequently asked questions regarding packaged retails investment products and the KIID.

The questions that are tackled in this document are;

• What are Packaged Retail Investment Products (“PRIP’s”)?
• What problems are being addressed?
• What are Key Information Documents (KIDs) and what will they include?
• Why do we need KIDs?
• Why is the EU taking action on KIDs rather than leaving the issue to the Member States?
• What investments will the KIDs cover?
• Why are some direct investments or simple savings not covered?
• Does the Commission plan on expanding the type of investment products covered by KIDs?
• What about other disclosures that investment product manufacturers or distributors might be required to produce or provide?
• How are UCITS (Undertakings for Collective Investment in Transferable Securities) funds being treated?
• Why are the proposals not exactly the same as the key investor information documents for UCITS?
• Who will have to produce the KID?
• Who will have to provide the KID to investors and when?
• Why do you cover private pensions? Are these not very different from investments? Does the proposal not take too much of a `one size fits all` approach?
• What are the costs of KIDs?
• When will the KID be in place?
• Are there any examples of the problems the KID will tackle?

Anyone wishing to seek detailed information and clarity in relation to the above topics should refer to the publication, link below for same.

EU Commission FAQ Re Packaged Retail Investment Products and the KIID

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