PRIIPs

You are a finance industry player (asset managers, bankers and insurers) who manufactures financial products (e.g. Investment funds, Life-insurance products, structured products, derivatives etc.) sold to retail clients ? Then you will need to provide a KID (Key Information Document) to your final clients prior to the sale and the deadline is short.

Each KID will be designed according to the standards laid down by the PRIIPs regulation. The deadline for the issuance of the first KID is the 1 January 2017.

Considering the computation complexity, as well as the challenge related to the data collection to properly prepare the KID's, there is no room for the industry to postpone any further. Get ready!
 

Scope

You have to prepare a KID if you offer one of the following products:

  • Investment funds (UCITS have a 5-year grace period of exemption);
  • Life insurance-based investment products (such as unit-linked or with profits policies);
  • Retail structured securities (including instruments issued by securitisation institutions and corporate bonds);
  • Structured term deposits;
  • Derivatives;
  • Convertible bonds and other structured securities with embedded derivatives;
  • Pension products and annuities not recognised in the national law.
     
Contacts
François Génaux
Financial Services Consulting Leader
Tel: +352 49 48 48 4175
Email
Benjamin Gauthier
Partner
Tel: +352 49 48 48 4137
Email

To find out more about our PRIIPs-related services, please refer to our dedicated flyer

Your Challenges

You have less than one year to comply with the regulation.

  • You need to produce fully compliant KIDs for all PRIIPs you produce;
  • You have to review and adapt the organisation, processes and workflows
    in order to gather all the required information on your products.
  • You'll have to produce KID on a manual or ad-hoc basis and this can impact significantly the time to market for new investment products;
  • You need to implement streamlined internal processes with a robust governance structure;
  • You must update the KID on a regular basis, according to market conditions;
  • You need a dedicated team responsible for overseeing and documenting the lifecycle of your KIDs, as well as compiling, verifying and updating them;
  • You have to setup a dedicated website containing the library of KIDs. This will facilitate the exchange of information between distributors and retail clients.
  • With an increased focus on the risk assessment, you need technical
    expertise to evaluate each product’s unique risks and rewards;
  • You will also need to present information about the performance
    scenarios and costs throughout the lifetime of product;
  • Explaining each product in a simple, understandable, non-technical language will require special attention so that key information is not diluted in the process.

Our Services

We support financial institutions, including credit institutions, investment firms, managers of investment funds and insurance undertakings across the whole PRIIPs value chain.