New Rules for the Calculation and Presentation of Risks, Rewards and Costs in Key Information Documents

Published 8 October 2021

PrintCategory: 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’

25 Aug 2022Financial RegulationUpdates

The 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 / PRIIPS
5 Nov 2019Financial Regulation

ESA 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 / PRIIPS
4 Nov 2019Financial Regulation

ESA 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 / PRIIPS
23 Mar 2019ELTIFs

ESMA 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 Standards
27 Feb 2019Financial Regulation

New 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 / PRIIPSWhistleblowing

Other updates

21 Nov 2022Impact and ESGUpdates

CSRD has been Passed by the European Parliament

The European Parliament has passed the Corporate Sustainability Reporting Directive (“CSRD”). CSRD replaces the Non-Financial Reporting Directive (“NFRD”), and introduces higher requirements of more detailed reporting, and a mandatory EU sustainability reporting standard.

ComplianceSustainability
27 Oct 2022Impact and ESGUpdates

Prohibition of Products Made with Forced Labour on the EU market

The European Commission has proposed a prohibition on making products made with forced labour available on the EU market as well as exporting such products from EU. The proposal shall be seen in connection with the proposal for a Directive on Corporate Sustainability Due Diligence (CSDD) adopted by the European Commission in February.

5 Oct 2022Impact and ESGUpdates

Invest Europe ESG Reporting Guidelines: Setting the Industry Standard for ESG Reporting

Invest Europe has published a set of ESG reporting guidelines with the aim of providing user-friendly and advanced guidelines on sustainability reporting within the European private capital sector.

Sustainability
30 Sep 2022Impact and ESGUpdates

Review of SFDR Article 9 Funds by the Swedish FSA

The Swedish Finansinspektionen has reviewed 30 Swedish-registered UCITS- and special funds with sustainable investment as their goal (SFDR article 9 funds). Finansinspektionen analyzed how fund managers met the requirements for providing sustainability-related information to investors.

Sustainability
25 Aug 2022Financial RegulationUpdates

The 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 / PRIIPS
1 Aug 2022Impact and ESGUpdates

New Guide on SFDR and EU Taxonomy Regulation

Invest Europe has published a comprehensive members guide on EU ESG reporting requirements for fund managers to clarify grey areas that exist around the day-to-day application of the regulation.

ComplianceDisclosure RequirementsSustainability