The Joint Committee of the European Supervisory Authorities (ESAs) (i.e. the EBA, EIOPA and ESMA) has published updated Q&As on the key information document (KID) requirements for packaged retail and insurance-based investment products (PRIIPs), and a flow diagram for the risk and reward calculations in the PRIIPs KID which sets out the calculation steps for the Summary Risk Indicator (market risk and credit risk assessment) and Performance Scenario calculations described in The Commission Delegated Regulation (EU) 2017/653.
The updated Q&As include a new section covering "General topics" (which includes a Q&A on the categorisation of a retail investor) and new Q&As on:
- Market risk assessment;
- Methodology for assessing credit risk;
- Summary risk indicator; and
- Presentation of costs.