What is an example of a Priip?

Packaged retail investment and insurance products (PRIIPs) are at the core of the retail investment market. They are investment products that banks typically offer to consumers, for example, when they want to save for a specific objective such as a house purchase or for a child’s education.

What is a PRIPs?

The term packaged retail investment and insurance-based products (PRIIPs) refers to a category of financial assets that are regularly provided to consumers in the European Union (EU) through banks or other financial institutions as an alternative to savings accounts.

What products are considered to be PRIIPs?

PRIIPs include:

• structured financial products, such as options, which are packaged in insurance policies, securities or banking products;
• financial products whose value is derived from reference values such as shares or exchange rates (derivatives);
• closed-ended and open-ended investment funds;

What is Priip regulation?

From 1 January 2018 the Packaged Retail and Insurance-based Investment Products Regulation (“PRIIPs Regulation”) will come into force which requires us to provide you with a pre-contractual Key Information Document. The main goal of the PRIIPs Regulation is to enhance investor protection standards for retail clients.

Is an AIF a Priip?

AIFs will therefore constitute PRIIPs for the purposes of the regime. The PRIIPs regime comes into effect on 01 January 2018.

What is the difference between kid and Kiid?

These used to be called Key Investor Information Documents (KIIDs). But they’re now being simplified, and in the coming year you’ll start to see Key Information Documents (KIDs) instead. Both KIIDS and KIDS give you important information about the fund – including its charges, risk rating and investment profile.

Who is the regulator for PRIIPs?

The U.K. Financial Conduct Authority has published proposals to amend the scope of the rules governing packaged retail and insurance-based investment products (or “PRIIPs”).

Is a fund a Priip?

PRIIPs include investment funds, life insurance policies with an investment element, structured investment products, structured deposits and financial instruments issued by special purpose vehicles that meet the definition of PRIIPs.

Who does PRIIPs regulation apply?

The PRIIPs Regulation will affect any person that offers a ‘packaged retail investment product’ to retail investors—i.e., non-professional clients within the meaning of MiFID II Directive 2014/65/EU, including, for the avoidance of doubt, high-net-worth individuals and their investment vehicles).

Does an AIF need a KIID?

What is the key requirement of the PRIIPs regime? Before an AIF is “made available” to EEA retail investors, a key information document (KID) for the AIF must be drawn up by the manufacturer of the product (eg the AIFM) and published on its website.

Who is the PRIIPs manufacturer?

The PRIIPs Regulation refers to manufacturers as entities “such as fund managers, insurance undertakings, credit institutions or investment firms”. However, this could extend to a non-financial firm that issues a product that qualifies as a PRIIP (including corporate bond issuers).

Is a UCITS a Priip?

Undertakings for collective investment in transferable securities (UCITS) meet the definition of a PRIIP. In this scenario it is the PRIIP manufacturer which will likely prepare the KID, it will expect SRI, performance scenarios and costs and charges to be delivered to it by the UCITS.

What is the priips regulation?

The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation has applied since 1 January 2018.

What are the key information documents for priips?

Key information documents for PRIIPs. In order to tackle these shortcomings, the EU has adopted a regulation on PRIIPs, which obliges those who produce or sell investment products to provide investors with key information documents (KIDs). KIDs should be a maximum of 3 pages and provide clear information on investment products.

What is priips regulation 1286?

Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 (“PRIIPs Regulation”) concerns key information documents for packaged retail and insurance-based investment products.

What are priips and why are they so complicated?

PRIIPs cover a range of investment products which, taken together, make up a market in Europe worth up to €10 trillion. Despite their potential benefits for retail investors, PRIIPs are often complicated and lacking in transparency. The information which institutions make available to investors when selling these products can be overly complex.