An Update on the Regulation on Key Information Documents for Packaged Retail and Insurance-Based Investment: Key Points for EU and Non-EU Asset Managers
In addition to the challenges of MiFID II, asset managers must also prepare for a new key information document regime for retail products. The Regulation on key information documents for packaged retail and insurance-based investment products (Regulation 1286/2014) (more widely known as “PRIIPs”, and referred to here as the “Regulation”) has been labeled “arguably the most extensive and complex joint work stream that has been tackled by the European Supervisory Authorities (ESAs)” . The Regulation cuts across different sector-specific initiatives in order to improve and consolidate the EU regulatory framework for pre-contractual disclosures to retail investors, and seeks to enable retail investors to understand better and compare the financial products available to them within the EU.