EIOPA confirms new PRIIPs RTS. What to pay attention to now

EIOPA confirms new PRIIPs RTS. What to pay attention to now

Following the adoption of the revised RTS (Regulatory Technical Standards) for PRIIPs by ESMA and EBA, they have now also been endorsed by EIOPA.

As a result, new PRIIPs KIDs with revised performance and transaction cost calculation methods are expected to arrive on January 1, 2022.

acarda fully supports the calculation methods and can also prepare the new PRIIPs KIDs together with the SFDR documents that are also required. Contact us if you need more information.

Latest state:

As of February 3, 2021, the EIOPA Board of Supervisors has approved the new PRIIPs RTS and submitted them to the EU Commission for adoption. Although industry associations such as EFAMA, BVI, CFA Institute and Better Finance will lobby for a delay or rejection, acarda expects the EU Commission and EU Parliament to adopt them in the coming months.

Key changes:

As of January 1, the preparation of PRIIPs KIDs for UCITs will be mandatory, as the exemption will then end. The disclosure rules of the new RTS are designed to make PRIIPs KIDs for UCITs fully applicable; with the aim of replacing UCITs KIIDs in the future.

  • Calculation of performance scenarios
The calculation of the performance scenarios is based on the prices of PRIIPs. When calculating past performance, the survey period extends up to 10 years into the past, while unrealized or potential losses must be taken into account to estimate future performance. The past performance figures must be disclosed in the PRIIPs KID.

  • Calculation of transaction costs
Transaction costs will continue to be calculated using the slippage or arrival price method. However, the new RTS expand the definition of arrival price by introducing the concept of a "justified independent price" and also allow the use of the "last available price".

Streamlined compliance with acarda

What acarda offers you is a service package that already fully maps all the latest changes. Launched in 2018, acardas software-as-a-service solution for PRIIPs and MiFID already includes ETPs, EMTs and KIDs in various languages.

Through the browser-based acarda dashboard, you can monitor and control the data flow, all calculations, production as well as distribution to different platforms, clients, websites and regulators from any location.

For maximum efficiency, acarda recommends combining KIDs production with the SFDR module to manage all calculations and documents through a single, integrated regulatory platform.

Johannes Waldheim

Head of Product Management, acarda

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