The Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs) has not yet been published in the Official Journal of the EU. The latest draft in circulation is dated 24 October 2014. It will enter into force on the 20th day following the date of its publication in the Official Journal. It requires the three European Supervisory Authorities (ESAs), namely EIOPA, ESMA and the EBA to prepare draft Regulatory Technical Standards (RTS) in specific areas. Its requirements will be applicable two years after its entry into force. The three ESAs published a discussion paper on key information documents (KIDs) for PRIIPs. The RTS will contain detailed rules on:
- The contents and presentation of the KID, including calculation methodologies and presentation templates necessary for a summary risk indicator, performance scenarios and cost disclosures (Article 8).
- The revision, review and republication of the KID (Article 10).
- The timing of the KID's delivery to the retail investor (Article 13).
The closing date for responses to the discussion paper is 17 February 2015. The ESAs are expected to submit the RTS to the Commission at the end of 2015 and start of 2016, and firms will start using the new KIDs at the end of 2016. The three ESAs launched a call for expressions of interest to identify members of a Consultative Expert Group, who will advise and provide technical input to the Joint Committee’s sub-group on KIDs.
UCITS will not be subject to the regulation for five years. As part of its review of the PRIIPs regulation, the Commission will assess whether the five-year transition for UCITS should be prolonged.