The Regulation on Key Information Documents for Packaged Retail and Insurance-based investment products ("PRIIPs") is of interest to a range of stakeholders, such as fund managers, insurance undertakings, credit institutions, and investment firms, involved in the manufacture or distribution of investment schemes and other packaged products in the retail market. It will change the way that firms present and provide product information to clients.
PRIIPS sets out uniform rules on the format and content of the key information document and on the provision of such documents to retail investors to allow them to understand and compare key features and risks inherent in a PRIIP.
The key areas include:
Before a product can be sold to retail investors, PRIIP manufacturers will need to produce a key information document for their products and ensure such information is accurate, fair, clear and not misleading. It is to be available on their website and must follow a prescribed format and include prescriptive information; Persons advising on or selling PRIIPS are required to provide the key information document in good time before any transaction is concluded. There are some small allowances on this point for distance...