New Rules for the Calculation and Presentation of Risks, Rewards and Costs in Key Information Documents
Published 8 October 2021
Category: Financial Regulation
The EU Commission has amended the EU delegated regulation for the presentation and the content of the Key Information Document (KID) that sets out information on risks, rewards and costs to be given to retail investors (i.e. non-professional investors) in good time before they invest in alternative investment funds etc.
The amendments to the delegated regulation can be found here and include:
- new methodologies underpinning the calculation of appropriate performance scenarios and a revised presentation of these scenarios, to ensure that retail investors do not have inappropriate expectations about the potential return on investment they may receive;
- revised summary on cost indicators and changes to the content and presentation of information on the costs of PRIIPs to help retail investors better understand the different types of cost structures as well as to facilitate the use of this information by persons selling or advising about PRIIPs;
- a modified methodology underpinning the calculation of transaction costs to address practical challenges that have arisen when applying the existing rules and issues regarding the application to certain types of underlying investments;
- modified rules for PRIIPs that offer a range of options for investment to ensure more clarity of the information on their costs.
Next Step: The amendments to the delegated regulation will apply from 1 July 2022.
Tags: KID / PRIIPS
Also tagged ‘KID / PRIIPS’
Proposal to amend the PRIIP Level 1 Regulation
The European Commission has earlier this year published a number of targeted proposals to amend the PRIIP Level 1 Regulation, implementing more modern rules on how a PRIIP Key Information Document (KID) is provided to investors. The proposed changes aim to change the content of the (KID) which must be provided to retail investors before investing.
KID / PRIIPSThe Application of New Rules on KID’s Postponed to 1 January 2023
On 6 September 2021, The EU Commission amended the EU delegated regulation for the presentation of the Key Information Document (“KID”).
KID / PRIIPSESA issues Joint Supervisory Statement on the Application of Scope of the PRIIPs Regulation to Bonds
The statement seeks to mitigate the risk of divergent application, by national competent authorities, for determining the type of bonds for which it is necessary to draw up a Key Information Document (KID).
Disclosure RequirementsESMAKID / PRIIPSESA issues Consultation Paper on Amendments to the Existing PRIIPS Regulation
On 16 October 2019 ESA has issued a consultation paper on amendments to existing rules underpinning the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs).
Disclosure RequirementsESMAKID / PRIIPSESMA Consults on Regulatory Technical Standards Under the ELTIF Regulation
On 28 March 2019, the European Securities and Markets Authority (ESMA) issued a Consultation Paper on draft Regulatory Technical Standards (RTS) under article 25 of the ELTIF Regulation.
ESMAKID / PRIIPSManagement RemunerationRegulatory Technical StandardsNew Proposal to Implement Authority to Enforce the PRIIPS-Regulation Into Danish Law
On 27 February 2019, the Danish Government presented a proposal for an amendment of the Danish AIFM Act giving the Danish Financial Supervisory Authority competence to enforce the PRIIPs regulation.
ComplianceDanish RegulationDisclosure RequirementsKID / PRIIPSWhistleblowingOther updates
Amendment of Section 2C of the Danish Corporation Tax Act regarding reclassification of transparent entities
Section 2C of the Danish Corporation Tax Act regards the situation where a Danish corporate entity which is considered transparent for Danish tax purposes is treated as a tax opaque entity in the jurisdiction(s) of its owner(s).
Venture CapitalReport on advancing sustainable finance
The EU Commission advisory body, Platform on Sustainable Finance, has published a report on advancing sustainable finance focusing on technical criteria for new economic activities and first review of the Commission Delegated Regulation (EU) 2021/2139.
SustainabilityThe Danish FSA: Managers need to ensure truly sustainable investments
The Danish Financial Supervisory Authority (the “Danish FSA”) has initiated an inspection of three managers in September 2024.
SFDRSustainabilityThe Danish FSAThe Omnibus package and its impact on EU’s ESG regulation
Yesterday, the European Commission revealed the proposal for the Omnibus Simplification Package.
CSDDDCSRDDisclosure RequirementsSustainabilityThe Danish FSA has updated the report on fitness assessments
On 5 February 2025, the Danish FSA published a new and updated version of its report detailing its practice regarding the fitness assessment of board members, executive management members and key persons in financial businesses.
Danish RegulationGovernanceThe Danish FSAEU Commission calls for review of certain outbound investments
On 15 January 2025, the European Commission issued a recommendation urging EU Member States to review investments out of EU for risks of enabling technology transfers/leakage into third countries (‘outbound investments’).
Cross-Border