Discussion paper key information documents for Packaged Retail and Insurance-based Investment Products (PRIIPs)

The Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs Regulation)empowers the three European Supervisory Authorities (ESAs) to prepare draft Regulatory Technical Standards (RTS) in specific areas. This Discussion Paper is a preparatory step in the preparation of the RTS, setting out early thinking on the part of the ESAs and gathersfeedback and reactions from stakeholders. The PRIIPs Regulation has been introduced to improve the quality and comparability of information provided to retail investors in the European Union (EU) on often complex investment products. The need for EU action reflects the difficulties retail investors have faced in comprehending and comparing investments, hampering the emergence of efficient EU markets. The RTS will contain detailed rules on the contents and presentation of the Key Information Documents (KIDs), including calculation ethodologies and presentation templates necessary for a summary risk indicator, performance scenarios, and cost disclosures. The measures should be designed to be engaging for retail investors, and to help them better comprehend and compare the many different products that fall within the scope of the PRIIPs Regulation. The RTS will also address measures on the revision, review and republication of the KID, and on the timing of delivery of the KID to the retail investor.