PRIIPs KID
Introduction to EU PRIIPs KID

From 1st January 2017 KIDs must be provided to retail investors for all packaged retail and insurance based products (PRIIPs).

PRIIPs (Packaged Retail and Insurance-based Investment Products) is the first Regulation on a European level to deal with pre-contractual information for certain financial services products.

The aim of the Regulation is to encourage efficient EU markets by helping investors to better understand and compare the key features, risks, rewards and costs of different PRIIPs, through access to a short and consumer-friendly Key Information Document (KID).

From 1st January 2017 a PRIIP manufacturer (or any other person who changes an existing PRIIP, such as a distributor) is required to:

  • Prepare a KID for each PRIIP that they produce; and

  • Publish each KID on their website.

A person who advises a retail investor on a PRIIP or sells a PRIIP to a retail investor must provide the retail investor with a KID in good time before any transaction is concluded. In addition to advisers, this will impact intermediaries such as distributors.

In the EU, UCITS KIIDs were initially granted an exemption from this legislation under 31 December 2021. This exemption ended up being extended to 31 December 2022. At this time is past, the requirement for selling UCITS products into the EU is that PRIIPs KIDs must be produced.

The UK have diverged from the EU in this regard and legislation has been extended the exemption for UCITS form the PRIIPs Regulation to 31 December 2026.

In addition, the FCA in PS 22/2 issued in march 2022, deviated from the EU regime. See dropdown below for a summary of the primary deviations.