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KIDs for PRIIPs: Performance Scenarios

1 year ago by Tanja Schicklberger Tanja Schicklberger

As explained in our blogpost Update on KIDs for PRIIPs, a new scenario was introduced by the regulatory technical standards (RTS) dated April 2017. Besides the unfavourable, moderate and favorable scenarios it’s obligatory to show also the Stress-Scenario. In this article we will have a more detailed look into those calculations, which are all based […]

KIDs for PRIIPs: Aggregation of MRM & CRM

1 year ago by Tanja Schicklberger Tanja Schicklberger

In our last blog posts about KIDs for PRIIPs we explained the Market Risk Measure (MRM) calculation and Credit Risk Measure (CRM) assessment separately due to the high complexity. In this article, we finally explain the aggregation of those two numbers, which ends in the Summary Risk Indicator (SRI). The aggregation of the MRM and […]

KIDs for PRIIPs: CRM Assessment

1 year ago by Tanja Schicklberger Tanja Schicklberger

As we are in the third quarter of 2017, various investment management firms we speak with continue to research and plan their technology implementation for PRIIPs regardless of the regulatory uncertainty. As part of this theme we wanted to take some time to write an article on one of the important aspects of KIDs for […]

KIDs for PRIIPs: MRM Calculation for Cat 1 & Cat 4 PRIIPs

1 year ago by Tanja Schicklberger Tanja Schicklberger

We already explained the Market Risk Measure (MRM) calculation for Category 2 and Category 3 PRIIPs in our last several blog posts. In this article we want to complete the explanation of the MRM calculation requirements by showing the MRM classification for Category 1 and Category 4 PRIIPs. Category 1 There are two possibilities for […]

KIDs for PRIIPs: MRM Calculation for Cat 3 PRIIPs

1 year ago by Tanja Schicklberger Tanja Schicklberger

In one of our last blog posts we explained details on the Market Risk Measure (MRM) Calculation for Category 2 PRIIPs. Category 2 PRIIPs include standard unit linear products. Those products offer non-leveraged exposure, or leveraged exposure, but with constant multiples. In contrast, Category 3 PRIIPs reflect the prices of underlying investments that are not […]

KIDs for PRIIPs: MRM Calculation for Cat 2 PRIIPs

2 years ago by Tanja Schicklberger Tanja Schicklberger

The PRIIP Regulation will bring significant challenges for the investment sector. As explained in our first blog post about this topic, there is an urgency as firms are preparing for the regulatory changes. The Regulatory Technical Standards (RTS) that were published in April this year include calculation details for the various indicators that need to […]

Update on KIDs for PRIIPs

2 years ago by Tanja Schicklberger Tanja Schicklberger

As we announced in our last article Basics about KIDs for PRIIPs the adoption of this new regulation was planned for January 2017. At that time, the European Supervisory Authorities (ESA), the European Commission and the European Parliament couldn’t find a solution for unanswered questions that was acceptable for everyone involved. For this reason, the […]

Basics about KIDs for PRIIPs

2 years ago by Tanja Schicklberger Tanja Schicklberger

Starting in January 2017, providers of investment products will have to hand out a Key Information Document (KID) to retail investors living in the EU when they are considering buying investment products. The new regulations will apply to Packaged Retail and Insurance-Based Investment Products (PRIIPs). These include asset management products and other “packaged” investment products […]