Proposal to amend the PRIIP Level 1 Regulation
Published 19 September 2023
Category: Financial 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.
Among others, the proposed amendments include:
- New ESG and summarising information sections
Retail investors increasingly seek information on the sustainability performance of investment products. The KID is proposed to include key ESG information on the sustainability profile of products subject to the SFDR in a separate section of the KID. Furthermore, a new section including summarised information about the PRIIP type, cost, summary risk indicator and recommended holding period is also proposed.
- Electronic KID and virtual simulation of costs
The Commission also has proposed that the KID is provided by means of an interactive tool that enables the retail investor to generate personalised information based on the information in the KID, including simulation of cost over a holding period that is different from the recommended holding period. In addition to the virtual KID, the paper version of the KID must still be issued upon request of the retail investor.
- Revision of the KID
Moreover, the Commission proposed to amend the conditions under which the KID must be updated or revised, distinguishing between PRIIP products that are still made available to retail investors and PRIIPs that are no longer made available, taking into account situations where a PRIIP product is no longer made available to retail investors.
The next step is for the Commission’s proposal to be reviewed by the EU Council and Parliament. After the text is agreed and published, the Commission suggests a period of 18 months before application of the amended rules.
You can find link to proposed regulation here
Tags: KID / PRIIPS
Also tagged ‘KID / PRIIPS’
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 / PRIIPSNew Rules for the Calculation and Presentation of Risks, Rewards and Costs in Key Information Documents
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.
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
Repeal of rules regarding shareholder loans and other amendments to the Danish Companies Act
On 19 December 2024, the Danish Parliament has adopted the amendment acts L71 and L72 regarding amendments to the Danish Companies Act and other Danish laws.
Venture CapitalAbolition of the ‘entrepreneur tax’ and other changes to Danish tax legislation adopted
On 19 December 2024, amendments to the Danish Corporation Tax Act, the Danish Capital Gains Tax Act and the Danish Personal Tax Act, as well as other Danish tax laws, were adopted by the Danish Parliament.
Venture CapitalThe Danish Financial Supervisory Authority publishes guiding statement on alternative investment fund managers’ inclusion of leverage in unlisted companies and issuers
On 17 December 2024, the Danish Financial Supervisory Authority (Danish FSA) published a guiding statement regarding the inclusion of leverage by alternative investment fund managers (AIFMs) in unlisted companies and issuers.
AIFMDDanish RegulationESMAThe Danish FSAThe 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.
CSRDSFDR