From July 2022, the enhanced regulatory
technical standards for the preparation of information documents under the
PRIIPs Regulation will apply. Due to the additional reporting burden that will
be created, an automated platform solution makes more sense than ever.
The PRIIPs regulation has already been in
force since January 2018 and aims to make "packaged" investment
instruments as well as endowment insurance products more comparable and
understandable for investors. The provisions of the regulation pose numerous
challenges for fund providers in terms of data management and reporting. For
example, 2 regulations must be observed in parallel: those for UCITS KIIDs as
well as those for PRIIPs KIDs, insofar as the investment products are
distributed via insurance companies. And for the preparation of PRIIPs KIDs,
the new RTS update has already changed quite a bit.
From July 2022, the new PRIIPs RTS
(Regulatory Technical Standards) will apply, which will additionally increase
the reporting effort. Specifically, fund providers must be able to report their
PRIIPs data according to EPT and CEPT standards. This includes an adjusted cost
disclosure including transaction cost calculation for all mutual funds,
the provision of PRIIPs KIDs as well as the
alignment of own factsheets, MiFID data and ESG reports.
Accordingly, asset managers have to
implement numerous adjustments in PRIIPs reporting. In addition, there are
further challenges arising from more extensive obligations to report
sustainability indicators. However, it will probably not be possible to
transmit ESG key figures via the KIDs. Instead, there will be separate pre-contractual
and periodic formats as per SFDR input.
Efficiency through automation
Due to the high demands on current and
future regulatory reporting, a central database and an integrated reporting
solution are recommended. All data calculations should ideally be done
centrally; PRIIPs KIDs and SFDR reports should basically be created with the
For this purpose, we offer an
industry-proven SaaS solution throughout Europe: the acarda platform. Asset
managers simply load their raw data - e.g. portfolio composition, transactions,
fund data and descriptions (narratives) - directly into the systems. All
further steps are automated. In addition, comprehensive managed services are
offered - up to the complete outsourcing of regulatory reporting.
We will be happy to advise you on further