KIDs for PRIIPs

SaaS and Managed Service from the awarded market leader

Generation of Key Information Documents for PRIIPs ensuring regulatory compliance and includes reliable pricing and risk indicators.

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One-stop-shop solution for fully automated and compliant KIDs for PRIIPs for asset management, banks and insurance companies. Available as either an on-premise or SaaS / cloud software or alternatively outsource to LPA. This web page focuses mainly on banking products (OTC derivatives and structured products). Further details for the asset management sector can be found through our regulatory reporting team here and for the insurance sector can be found through our Modelity team here.

Spirit of the PRIIP Regulation - Transparency for retail investors needs to be increased specially with regards to costs, chances and risks.
The aim is to make all product types comparable by means of a uniform document.
KID should be “accurate, fair, clear and not misleading“.

In order to keep your customer business successful despite complex innovations, we accompany you professionally, technically and always personally.

Capmatix combined with LPA KID Calc service serves as a powerful KID one-stop-shop solution.

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We have built

5elements
into our KID Calc service that will create a proprietary solution for KIDs for PRIIPs results.

One-product-mask for structured investment products

Easily structure payoffs of SRPs in one product mask and thereby be able to reduce time-to-market.

Restriking for OTC derivatives

Before calculation PRIIP numbers for OTC we price OTCs in order to keep costs constant.

Structuring service

We build up a structuring and optimization service to create products given PRIIP results such as SRIs.

Ad-hoc calculations

One-click initiation of PRIIP calculations.

Regulatory expertise

Our experts are a part of EUSIPA and are always one step ahead in implementing new regulatory requirements.

Find more details on how our KIDs for PRIIPs works

Funds will be subject to mandatory application of the PRIIPs regulation in all EU member states in 2022

The Key Information Document (KID) is mandatory for PRIIP funds from January 2022.

  • 11-2014Capmatix extracts all essential parameters for KID production from input by product manufacturers.
  • 06-2015Publication of a technical discussion paper on the PRIPPs regulatory by ESAs
  • 04-2017European parliament approves final RTSon PRIIPs regulation
  • 01-2018Start of mandatory application in all EU member states e.g. for non-UCITS PRIIPs
  • 12-2018Postponement of the start of mandatory application in all EU member states e.g. for Non-UCITS funds
  • 01-2022Start of application in all EU member states e.g. for UCITS funds

Current development and next steps:

  • The ESAs (EBA, ESMA and EIOPA) are reviewing currently content aspects within the framework of the public discussion and consultation process.
  • Possible publication of additional technical guidelines in the form of FAQs in 2019.

Amendments to KIDs for PRIIPs regulation

The European Supervisory Authorities (ESAs) are currently consulting amendments regarding:

 

PRIIPs Performance Scenarios

Whether to keep the Probabilistic Approach or to move to an Illustrative Approach. In case the Probabilistic Approach is continued, the ESAs are considering changes to the calculation methodology (e.g. changes to the growth rates, instead of using the realized last 5 years) and to the presentation of the scenarios (e.g. reduce IHPs, remove/change stress scenario).

 

PRIIPs Costs

  • Presentation of costs - The ESAs are considering changes to the presentation of the costs and suggested four alternatives for the two cost tables.
  • Transaction Costs - The ESAs are suggesting a few changes to facilitate the implementation of Transaction Costs.
 

UCITS

Towards the expiry of UCITS exemption from PRIIPs the ESAs are suggesting the inclusion of various topics from the UCITS regulation into PRIIPs. In addition, the ESAs suggest to add past performance to Category 2 products (e.g. mainly for funds, similar to UCITS KIID).

 

Multi Option Products (MOPs)

The ESAs suggest when applying Article 10 b (i.e. generic KID and specific information) to select at least four “most commonly selected options” and produce an Article 10 a-like KIDs for them (to allow investors to see the “full picture” of scenarios and costs in one document).

Go live of obligation for KIDs for PRIIPs of UCITs

The European Supervisory Authorities (ESAs) are currently consulting amendments regarding:

From KIID...

Objectives and investment policy

Risk and earning profile

Costs

Previous performance

Practical information

3 instead 2 pages

Highly standardized specifications for KID Documents instead of flexible formulations

Annual & ad hoc updates in case of important changes regarding risks or future forecasts

Increased effort in terms of scope (product & data), risk, performance & cost calculations as well as updates and maintenance

…to KID

Purpose

What is this product?

What are the risks and what can I get in return?

What happens if the Issuer is unable to pay out?

What are the costs?

How long should I hold the investment and can I take money out early?

How can I complain?

Other relevant information

"Initially working with LPA to build a Key Information Document production tool for engaging with Retail Clients, their support and quality of output has led to further engagements and we really see LPA as a partner for our business growth, as we expand and adapt to the requirements of the regulatory environment."

 

James: Business Manager - EMEA FX - High-Tech commercial bank

 

"There were cheaper proposals. BUT the we chose LPA because the proposal not only solved the immediate need but gave potential to expand the automation of tasks to other areas. This was driving the choice for LPA."

 

Senior Executive – leading Scandinavian Bank

 

Highlights

The end of the transition period is in sight. What particular challenges does the PRIIPs Regulation pose for real estate fund managers?
The end of the transition period is in sight. What particular challenges does the PRIIPs Regulation pose for real estate fund managers?
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OTC Derivatives: How are they affected by the new PRIIPs RTS?
OTC Derivatives: How are they affected by the new PRIIPs RTS?
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What are the new standards for PRIIPs KIDs, effective July 1st 2022?
What are the new standards for PRIIPs-KIDs effective July 1st 2022?
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Comparison between UCITS SRRI and PRIIPs SRI
Comparison between UCITS SRRI and PRIIPs SRI
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CRR II: A focus on greater transparency and enhanced standards for investment funds
CRR II: A focus on greater transparency and enhanced standards for investment funds
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Increased transparency for PRIIPs KIDs: Holistic and automated reporting reduces costs and gives clients a more competitive edge
The regulatory dynamics on the capital market will remain high over the coming years. In 2022, following approval by the European Commission and the European Parliament, the new Regulatory Technical Standards (RTS) for Key Information Documents (KIDs) of Packaged Retail Investment and Insurance-based Products (PRIIPs) with a revised performance calculation and different methods for calculating transaction costs will come into force. At the same time, the second stage of the Sustainable Finance Disclosure Regulation (SFDR) will become effective with the required provision of pre-contractual and annual ESG documents. In order to meet all requirements and maintain a competitive edge in the dynamic regulatory environment despite increased reporting efforts, it is now time for asset managers and their service providers to holistically reconsider their data management and reporting.
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A complex task for amendment Regulatory Technical Standards on KID approved by ESA
Until year end 2021 the manufacturers of structured products, OTC derivatives and UCITS funds and AIF are facing a lot of regulatory work. They are required to identify and implement amended regulatory technical standards (RTS) on the key information documents (KID) for packaged retail and insurance-based investment products (PRIIPs) approved by the European Supervisory Authorities (ESA) on 3 February 2021.
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June 2020 Amended PRIIPs RTS: Performance Scenarios for Autocallables
In a previous article, we described the changes in the draft amended PRIIPs RTS applicable for structured products. The amended RTS proposal was finally approved by EIOPA’s board and now it is up to the Commission to determine the next step and whether this RTS becomes active by the end of this year.
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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.
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Announcement of final report and draft RTS on disclosures under SFDR by European Supervisory Authorities
The Joint Committee of the three European supervisory authorities (EBA, EIOPA and ESMA) published the final report on the draft regulatory technical standards (RTS) on the content, methodology and presentation of disclosures under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR) on February 4, 2021.
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June 2020 Draft Amended PRIIPs RTS: What’s inside for Structured Products?
PRIIPs RTS solutions from LPA. Packaged Retail and Insurance-based Investment Products
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PRIIPs methodology in light of COVID-19 pandemic – Does it deliver? PART 2
Comparing actual performances of several equity indices, equity ETFs and oil during the COVID-19 crisis with the PRIIP KIDs’ Stress Scenarios.
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PRIIPs methodology in light of COVID-19 pandemic – Does it deliver?
PRIIPs regulation aims to help investors understand investment products behaviour and support comparison with other investment products.
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Features for a succesful KID production

Capmatix in combination with LPA KID Calc provides the six most important features for a successful KID production

  • Product parametrisation
  • Calculated data
  • Archiving
  • Market data
  • Life-cycle events
  • Document distribution

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