COMMISSION DELEGATED REGULATION (EU) …/... of 8.3.2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents
1. Regulation 1286/2014 of the European Parliament and of the Council of 26 November 2014 – known as the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation – introduces a requirement for manufacturers of investment products to make available standardised disclosure documents to retail investors before they invest in their products. These standardised disclosure documents are called Key Information Documents or “KIDs”.
2. The Commission has adopted a Delegated Regulation that specifies how the information in the KID should be presented and calculated in accordance with the Level 1 mandate. This includes the methodologies that should be used to calculate costs, risks and rewards; and specifying which methodology should be used for different types of financial instrument. These methodologies are specified in the Regulatory Technical Standards (RTS).
3. Further, this Delegated Regulation specifies the requirements on the review, revision and publication of the KID, as well as the conditions that need to be met to fulfil the requirement to provide the retail investor with a KID in good time.
4. The PRIIPs Regulation requires the European Supervisory Authorities (ESAs) to develop Regulatory Technical Standards (RTS) that specify how the information in the KID should be presented and calculated in accordance with the Level 1 mandate. Specifically, Article 8(5) requires an RTS to be developed on the methodologies for the calculation and presentation of risks, rewards and costs within the KID; Article 10(2) requires an RTS on the review, revision and publication of the KID; and Article 13(5) requires an RTS on the conditions for fulfilling the requirement to provide the KID in good time to the retail investor. This Delegated Regulation draws together these three RTS into a single legal act so as ensure consistency across PRIIPs Level 2 provisions.