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Responsibilities of the manufacturer/person Form and content of the Key Information Level 2 measures At the end of 2018, the three European Supervisory
selling Document Authorities consulted on targeted amendments to the
- A delegated Regulation on the content and Delegated Regulation covering the rules for the KID for
The manufacturer is defined as “any entity that The KID is a maximum of 3 pages, is clear and presentation of the KID, including the calculation of costs; PRIIPs. BIPAR responded to the consultation:
manufactures PRIIPs and any entity that makes changes understandable/readable and is intended to provide the review/revision of the KID; and the provision of the
to an existing PRIIP, including, but not limited to, altering information on the nature, risks, costs, potential gains KID. - calling for a thorough review of the KID for PRIIPs,
its risk and reward profile or the costs associated with an and losses of the product and help comparison with other - A delegated Regulation on product intervention - stressing that it does not support investors
investment in a PRIIP”. products. It contains information on: - There was an empowerment for a Delegated Act receiving both the UCITs KIID and the PRIIPs KID and that
- the manufacturer and supervisor, on the details of procedures to establish if a PRIIP targets in the meantime, it is better to keep the current system
The person selling a PRIIP is defined as “a person offering - the date, specific environmental or social objectives (“EOS PRIIPs”) i.e. an exemption for UCITs so that UCITS management
or concluding a PRIIP contract with a retail investor”. - if needed, a comprehension alert warning to the but the Commission did not publish a Delegated Act (the companies can continue providing a KIID instead of a KID.
investor that the product is not simple, ESAs did publish their technical advice to the Commission - supporting the inclusion of past performance in
The product manufacturer - before making a PRIIP - the nature and main features of the product (type; in July 2017 for which BIPAR provided input. For more the KID’s performance scenarios.
available to retail investors - draws up the KID and objectives and means for achieving them; description of detail see last year’s Annual Report). At the end of 2018,
publishes it on his website. The person advising or selling the type of retail investor to whom the PRIIP is intended to the Commission did start working however on the
must provide the KID to the investor for free and in good be marketed; details of insurance benefits- if any; terms development of an “EU Ecolabel for Financial Products” In February 2019, the ESAs published their final
time before the latter is bound by any contract or offer. of the PRIIP), (see article on sustainable finance for more information). recommendations. They decided not to propose targeted
- the risk-reward profile, amendments to PRIIPs at that time, but to initiate a more
The Regulation also contains a reference to persons - the consequences of default of the manufacturer, Level 3 measures comprehensive revision of the level 2 PRIIPs Delegated
advising or selling PRIIPs with regard to complaints- - the costs (summary indicators and total Regulation in 2019, amongst others, on performance
handling. Indeed they also (together with manufacturers) aggregate costs) - reference is made to distribution costs - Interpretative Guidelines on the KID by the and cost disclosure. In a public hearing on PRIIPs, the
have to establish appropriate procedures and to be provided by the advisors, distributors or any other Commission (July 2017), covering issues such as ESAs explained that their work will focus on level 2, but
arrangements that ensure that retail investors have person advising on or selling the PRIIP. application of PRIIPs rules by Multi-Option Products’ if they find that level 1 changes are needed, they would
an effective way of submitting a complaint against the (MOPs) manufacturers, KIDs for IBIPs, PRIIPs only sold by recommend such changes too. They added that some
manufacturer, that they receive a substantive reply in a intermediaries; etc. Guidelines are not legally binding and further differentiation for certain PRIIPs may be needed
timely and proper manner, and that procedures are also are based on stakeholder feedback received, amongst and that they will also do consumer testing regarding
available in case of cross-border disputes. others from BIPAR. the existing KID and possible alternatives. Alongside the
- “Questions and Answers” on the KID by the ESAs recommendations, the ESAs also published a supervisory
(latest sets published in July 2018 and April 2019). Q&As statement recommending PRIIP manufacturers to include
are also not legally binding, nor are they subject to a a warning in the KID, so retail investors are aware of the
“comply or explain” procedure. They aim at “promoting limitations of the current performance scenarios.
common supervisory approaches and practices in the
implementation of the KID”. They cover issues such as In parallel, the European legislators agreed to extend the
costs added by brokers, the meaning of biometric risk deadline for the review of the PRIIPs Regulation until 31
premium/insurance premium, the role of advisers and December 2019 and to extend the exemption for UCITs so
intermediaries in case of Multi-Option Products (MOPs), they can continue providing a KIID instead of a KID until
etc. end 2021.

Review of PRIIPs / Next steps In October 2019, the ESAs launched a new consultation
setting out proposed amendments to the PRIIPs
The Commission was due to review the PRIIPs Regulation Delegated Regulation on the KID. The review is to address
by 31 December 2018, including specific surveys such as the main regulatory issues identified by stakeholders and
the inclusion in the scope of pensions or a market survey supervisors since the implementation of the KID and to
on national online fund calculators. The Commission, make specific changes to allow the rules to be applied to
however, did not meet this deadline. UCITs.

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