On 11 November 2015, the Joint Committee of the European Supervisory Authorities (ESAs, being the EBA, EIOPA and ESMA) published a consultation paper on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs). UCITS will not be obliged to move to producing a PRIIPs KID (which is based on the UCITS KIID) until 2019 at the earliest. The consultation sets out the proposed requirements to include in the preparation of the KIDs. These include the following:
- A common mandatory template for each KID, including the texts and layouts to be used.
- A summary risk indicator of seven simple classes for the risk and reward section of the KID.
- A methodology to assign each PRIIP to one of the seven classes contained in the summary risk indicator and for the inclusion of additional warnings and narrative explanations for certain PRIIPs.
- Detail on performance scenarios and a format for their presentation, including possible performance for different time periods.
- Specific layouts and contents for the KID for products offering multiple options that cannot be covered in three pages.
The consultation closes on 29 January 2016. The ESAs will hold a public hearing on 9 December 2015. The RTS and accompanying impact assessment will be submitted to the European Commission by 31 March 2016.
The European Commission has published a report on the consumer testing study that it has carried out relating to the possible new format and content for the PRIIPs KID together with a summary thereof.