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PRIIPS : Final Report on amendments to the KID

10/05/2019

On the 8th February 2019, the European Supervisory Authorities (ESAs) published their final report following a consultation on targeted amendments to the Delegated Regulation covering the rules for the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs).

Considering the outcome of the consultation and the latest information regarding discussions between the European co-legislators on the application of the KID by UCITS and relevant non-UCITS funds and the timing of a review of PRIIPs, the ESAs have decided not to propose targeted amendments at this stage.

However, proposals to strengthen the narrative explanations relating to the performance scenarios are seen by the stakeholders as an improvement and ESMA understands that this needs an immediate response. In that context, ESMA recommends that an additional statement be included warning the investors that the performance scenarios are only an indication of some of the possible outcomes and that actual returns could be lower.

ESAs intend to propose new RTS by the end of the year, well before the expected end of the exemption for UCITS at the end of 2021.

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