The Application of New Rules on KID’s Postponed to 1 January 2023

Published 25 August 2022

PrintCategory: Financial Regulation

On 6 September 2021, The EU Commission amended the EU delegated regulation for the presentation of the Key Information Document (“KID”). Read more about the amendments here.

The initial effective date was 1 July 2022. However, on 24 June 2022 the EU Commission published a delegated regulation that postpones the application date of certain PRIIPs-related disclosures.

  • The new rules in the delegated regulation are postponed to 1 January 2023.
  • The rules amend the regulation for the presentation and the content of the KID that sets out information on risks, rewards and costs. The changes include new calculation methods affecting the computation of risks, performance scenarios and transaction costs. Changes to the KID template are made as well.

As of 1 January 2023, the amendments to the PRIIP regulation require that fund managers take into consideration the amended rules for the calculation and presentation of risks, rewards and costs in KIDs when making a KID available to retail investors. Additionally, the fund managers must revise existing KID’s in accordance with the new rules when raising funds after 1 January 2023 in existing funds.

 

Tags:  KID / PRIIPS


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