|
Brussels, |
|
Information to provide to investors
Packaged retail investment and insurance products (PRIIPs) are a significant part of the retail investment market in Europe, encompassing a range of products aimed at helping consumers save for specific goals like home purchases or education.
Despite their benefits, PRIIPs can be complex and lack transparency, with information often being too complicated for consumers to understand and compare.
Regulation and Key Information Documents (KIDs)
To address these issues, the EU introduced a Regulation on PRIIPs Regulation on PRIIPs which mandates that producers and sellers of these investment products must provide investors with key information documents (KIDs). These documents are designed to be no more than three pages long and must present clear, concise information about the investment product.
Contents of KIDsKIDs must include
Key Documents and Studies
Relevant Legislation
Despite their benefits, PRIIPs can be complex and lack transparency, with information often being too complicated for consumers to understand and compare.
Regulation and Key Information Documents (KIDs)
To address these issues, the EU introduced a Regulation on PRIIPs Regulation on PRIIPs which mandates that producers and sellers of these investment products must provide investors with key information documents (KIDs). These documents are designed to be no more than three pages long and must present clear, concise information about the investment product.
Contents of KIDsKIDs must include
- The name of the product and the identity of its producer.
- The types of investors the product is intended for.
- The risk and reward profile, including a summary risk indicator, possible maximum loss, and performance scenarios.
- Costs associated with investing in the product.
- Information on how and to whom investors can make complaints if issues arise with the product or the entity involved in its production, advice, or sale
Key Documents and Studies
- Retail investment strategy: Aims to empower retail investors to make informed investment decisions that align with their needs and ensure fair treatment and protection.
- Consumer testing study (February 2020): Investigates retail investors' preferences regarding performance scenarios and past performance information within KIDs.
- Study on the distribution systems of retail investment products (April 2018): Conducted by Deloitte Luxembourg, focusing on how retail investment products are distributed.
- Guidelines on the key information documents (KIDs): Provides interpretative guidelines on the content and format of KIDs.
- Consumer testing study (October 2015): Examines potential new formats and content for retail disclosures of PRIIPs
Relevant Legislation
- PRIIPs Regulation (1286/2014/EU: Governs the requirements for providing KIDs to ensure transparency and comparability of PRIIPs for retail investors.
