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 regulation no. 1286/2014 has been postponed by one year to the 01.01.2018 on the basis of the amendment resolution no. 2016/2340. On April 12th, 2017 a final version of the regulatory technical standards (RTS) was approved and published. Compared to the version of last year the new version of the RTS shows three main differences.
First, an explicit Stress-Scenario is introduced, besides the other three scenarios. It’s supposed to raise the investors’ awareness of a worst case situation. The formulas to calculate the moderate, unfavourable and favourable scenarios have remained the same. Secondly, a grandfathering period until the end of 2019 was established for some funds. According to this, producing additional PRIIP KIDs, besides regulation documents, which were required so far, is not mandatory. The last change, that was made, is a new specific labelling requirement for some complex products.
The objective of the regulatory technical standards, is to standardize the PRIIP KID information sheets and to facilitate the overview of all essential data for investors.
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