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
The Danish FSA’s role in the sustainability reporting in 2025
The Danish Financial Supervisory Authority (“FSA”) has published a short press release regarding their role in relation to the sustainability reporting in 2025.
CSRDProposal on independent providers of audit services regarding sustainability reporting
The Danish Parliament has presented a proposal for legislation on independent providers of audit services regarding sustainability reporting.
CSRDInvest Europe launches enhanced ESG reporting template
Invest Europe has launched an enhanced ESG reporting template to drive convergence and support early-stage investors developed with Venture ESG.
CSRDSFDRThe Danish FSA has updated the fit & proper guidelines
On 29 November 2024, the Danish FSA published a new and updated version of its guidelines on requirements in the financial legislation regarding the suitability and integrity of board members, executive management members and key persons in financial companies, known as the fit & proper guidelines.
Danish RegulationGovernanceThe Danish FSAThe Danish FSA has published the designated IT suppliers to financial companies subject to NIS2 and under the supervision of the Danish FSA
The Danish FSA has appointed a number of IT suppliers as operators of financial digital infrastructure to which NIS2 applies.
CybersecurityDORANIS2The Danish FSAESMA Initiates Data Collection on Investment Costs for AIFs and UCITS
On 14 November 2024, the European Securities and Markets Authority (“ESMA”) announced that ESMA, together with the national competent authorities, has launched a comprehensive data collection exercise focusing on the costs linked to investments in Alternative Investment Funds (“AIFs”) and Undertakings for the Collective Investment in Transferable Securities (“UCITS”).
AIFMDESMA