Shearman & Sterling LLP | FinReg | European Commission Publishes EU Delegated Regulation Aligning KID Publication Requirements under PRIIPS Regulation
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  • European Commission Publishes EU Delegated Regulation Aligning KID Publication Requirements under PRIIPS Regulation
    11/08/2019
    A Commission Delegated Regulation amending secondary legislation supplementing the Packaged Retail and Insurance-Based Investment Products Regulation has been published in the Official Journal of the European Union. The PRIIPs Regulation introduced a requirement for manufacturers of PRIIPs to produce a standardized “key information document”, designed to improve retail investors’ understanding of the financial products they were purchasing. Regulatory Technical Standards govern the presentation, content, review and revision of KIDs and the conditions for fulfilling the requirement to provide a KID. Under the PRIIPS Regulation, management companies, investment companies and persons advising on, or selling, units in undertakings for collective investment in transferable securities were originally exempt from the requirements of the PRIIPs Regulation until December 31, 2019. That deadline has since been extended to December 31, 2021. This exemption also applies to rules established by Member States on the format and content of the key information document required by the UCITS Directive, to non-UCITS funds offered to retail investors by such companies or persons. The PRIIPs KIDs RTS contain a provision allowing manufacturers of PRIIPs to continue using such documents drawn up in accordance with the PRIIPS Regulation and UCITS directive until December 31, 2019. To enable PRIIP manufacturers to determine their obligations with certainty, the amending Commission Delegated Regulation extends this transitional provision under the RTS to December 31, 2021, in line with the PRIIPs Regulation.
     
    View the Commission Delegated Regulation.
     
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    TOPICS: FundsSecurities