Key Information Document provided on Packaged retail and insurance-based investment products (PRIIPS)

Background and objectives

The objective of the PRIIPS initiative is to improve the protection of retail investors in the field of financial services so that they would be able to choose their financial products based on clear and reliable information. The PRIIPS Regulation and the elaborating level 2 measures prescribe in particular on the information to be given on the investment products.

A retail investor means an investor other than professional clients under the MiFID Regulation. Professional and non-professional clients are defined in chapter 1, section 23 of the Act on Investment Services (747/2012).

The PRIIPS Regulation applies to service providers producing and offering PRIIPS products to retail investors. They include banks, insurance companies, management companies, alternative investment fund managers and bond issuers.

The service provider must prepare a Key Information Document (KID) on each product. The KID provides information on the key characteristics of the investment product as well as related risks and costs. The document must contain information on, among other things, whether the product can incur losses and on how complex the product is.

A Key Information Document must be prepared for example on the following products:

  • alternative investment
  • fundsstructured retail market products (including structured deposits)
  • insurance policies used for investing and
  • savingsinvestment funds

With respect to investment funds (UCITS), the PRIIPS Regulation includes a transitional provision according to which there is no need for investment funds to provide a KID under the PRIIPS Regulation on investment funds until the end of 2019. There must, however, be a Key Investor Information Document under UCITS regulations.

Entry into force

The PRIIPS Regulation (1286/2014EU) entered into force on 29 December 2014, and its application was due to begin on 31 December 2016. The Regulation has been amended and it shall apply from 1 January 2018.

The PRIIPS Regulation provides powers for the Commission to issue level 2 measures prescribing in more detail the format and contents of the KID as well as the presentation and calculation of various information.

The PRIIPS Regulation also contains, in addition to provisions on the key information document, provisions on market monitoring and on product interventions, i.e. banning or limiting the offering of products. In addition to the PRIIPS Regulation, the protection of private investors is sought to be improved by a new Directive on insurance distribution (IDD) as well as the amendment to the UCITS Directive (UCITS V). In addition, MiFID II regulation entails improvements to investor protection (entry into force at the beginning of 2018).

Regulation

National implementation

Level 2 regulation

On the presentation, content, review and revision of key information and the conditions for fulfilling the requirement to provide such documents 

Commission Delegated Regulation, (2017/653)

Commission Delegated Regulation on product intervention, (C(2016) 4369)

Level 3 regulation

Commission Guidelines on the application of the PRIIPS Regulation, (2017/C 218/02)

  • Q&As published by the European supervisory authorities (EBA, EIOPA, ESMA) , English
    • 19.12.2017 Q&A on the comprehension alert in the Key Information Document for Insurance-Based Investment Products
    • 20.11.2017 Questions and answers (Q&A) on the PRIIPs KID
    • 4.11.2017 Guidelines under the Insurance Distribution Directive on Insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved
    • 4.7.2017 Questions and answers (Q&A) on the PRIIPs KID
    • 18.8.2017 Questions and answers (Q&A) on the PRIIPs KID
    • 18.8.2017 PRIIPs – Flow diagram for the risk and reward calculations in the PRIIPs KID (flow diagram for the risk and reward calculations)

See also

​Commission PRIIPS siteRegister of delegated acts

Contacts

​FIN-FSA's instructions on sending questions (email addresses etc.) and information on responding 

Questions on PRIIPS can be sent to FIN-FSA at the address:

PRIIPSquestions(at)fiva.fi
Use the following header in the email:  ”PRIIPS_Regulation_Art  / Issue / Company"

We will not necessarily respond to interpretation questions presented through this channel directly to the sender, but we will forward the questions as necessary to those preparing the lower-level EU regulation and instructions on the application of the PRIIPS.

The European supervisory authorities will prepare summaries of questions and answers (Q & A).

16 February 2018

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