Following the information provided by the German Investment and Asset Management Association (BVI) on 21 May 2021, the EU Commission is considering postponing the launch of PRIIPs KIDs by six months. A set of measures, which in addition to technical adjustments to Level 2 also includes a selective amendment of the Level 1 Regulation, will be passed on by the EU Commission to the EU Parliament and the Council by the end of June 2021.
At this point, the EU Commission is planning to introduce PRIIPs KIDs on July 1st 2022. It aims to adopt the draft amendment to the Regulatory Technical Standard (RTS) in June 2021, as the submission of the revised RTS to the EU Commission and the translation of the RTS into all official languages will require time and the RTS is therefore not expected to be issued until the fourth quarter of 2021.
These were initially supposed to come into force in January 2022. The extended timeframe gives product providers, advisors and regulators more time to carefully implement the requirements. This particularly affects the new performance calculations and transaction costs. The estimation method can continue to be used until 2024, but should be verified by firms' own transactions, which is in line with building a history of market prices. Until the implementation of the PRIIPs KIDs, the UCITS KIIDs will continue to be used. There will also be a technical correction to the UCITS Directive, the Commission said, to align the information about a fund that is parallel from UCITS KIIDs and PRIIPs KIDs, as this would lead to uncertainty for investors and advisers.
"The new RTS buys us time, but asset managers should still prepare in time for the changeover and market price or arrival price method for transaction costs. Our acarda regulatory reporting platform already covers the new risk, performance and cost calculations. With the same data set, even cost-effective additional reports and data set such as KIDs, SFDR documents, TPT, CRR, AIFMD, VAG and SFDR EET can be generated. Thus, you centralize data management and at the same time reduce time and costs to a minimum – while maximizing the efficiency of all processes,
”, says acarda CEO Gerhard Jovy
and adds: “Our customers only need provide raw data such as portfolio composition, transactions, fund data and descriptions and we take care of implementing the PRIIPs reform and other desired reports.”
More about the specifics of the acarda solution can be found here.