What are PRIIP KIDs?

PRIIP KIDs are standardised information sheets that provide basic information about investment products. They are used to present complex financial data in an understandable way and to help investors make decisions. PRIIP stands for “Packaged Retail and Insurance-based Investment Products – PRIIPs” and “KIDs” for “Key Information Documents”. The creation of key information documents (KIDs) is mandatory for all those who offer advice on PRIIPs or sell them. The KID may be a maximum of three A4 pages long and must be written in simple language. The content and format are defined to ensure comparability with other products on the market. The KID contains general facts about the product, costs, risk/return profile and possible performance scenarios.

What considerations are important for PRIIP KIDs? 

It is important that PRIIP KIDs are clear and concise. In particular, management companies and asset managers must ensure that PRIIP KIDs are updated in a timely manner, especially if they are still created manually. Close monitoring of regulatory requirements and rapid adaptation to changes are essential here. In principle, PRIIP KIDs must be created and published again if the risk indicator changes over a longer period of time, but at least every 12 months. 

What will change for PRIIP KIDs in the future?

There are no known significant changes to PRIIP KIDs in 2024. However, there will be a change from 1 January 2025 that will affect transaction costs.  In future, transaction costs will have to be calculated using the arrival price method.

Specific transaction costs must be stated within the PRIIP KIDs. Currently, management companies have the option of estimating these costs approximately using the MiFID or estimation method instead of calculating them. From 2024/25, the EU will require all PRIIP producers to use the arrival price method to calculate transaction costs in order to ensure cross-product comparability. Further details on the arrival price method for transaction costs can be found here

Please do not hesitate to contact us for further details or advice. Anevis Solutions takes on the creation of your Key Information Document. This can be done with your design within the legal framework. We ensure the daily calculation and monitoring of Key Risk Figures (VaR-equivalent volatilities and credit-risks) to determine the Summary Risk Indicator.

For more information, feel free to reach out to us. Contact us anytime!

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