Following consultations, the EU Commission has issued a draft regulation on Packaged Retail Investment Products (PRIPs). PRIPS include investment funds, insurance-based investment products, retail structured securities (such as certificates and notes), structured term deposits and private pensions. The regulation (drawing on the UCITS KIID template) will oblige every manufacturer of PRIPs (e.g. investment fund managers, insurers, banks) to produce a Key Information Document (KID) for each PRIP. The draft will pass to the EU Parliament and EU Council for consideration and adoption under the co-decision procedure. Member states will then have 2 years to transpose the provisions into national law (possibly late 2014), by which time the implementing measures should be in place.

The draft regulation aims to achieve consistent and effective standards for investor protection across these retail investment products through enhanced product disclosure, to achieve a level-playing field for distributors and providers of these products, to enable investors to compare products and to assist investors in understanding the key features and risks of the products.

The KIDs will be a few pages long and will follow a template as regards structure, content, sequence and presentation. It will use simple language and be fair clear and not misleading. Each KID will provide information on the product's main features, performance, risks and costs. The information will be shown as answers to simple questions such as, “What is the investment? Can I lose money? What are the risks and what might I get back? What are the costs?”

UCITS will replace KIIDs with the KID with a 5 year transitional period (from the entry into force of the regulation