New PRIIPs KIDs by 2023
There was a temporary exemption until 2023 for UCITS investment funds to have to produce so-called PRIIPs KIDs documents.
PRIIPs means “Packaged Retail and Insurance-based Investment Products“ and KIDs stands for “Key Investment Documents”.
UCITS investment funds now also have to make PRIIP KIDs available for their distributors.
Until 2023, UCITS funds produced another much simpler document called a UCITS KIID document.
For marketing to retail investors, the old UCITS KIIDs documents are now replaced entirely by the new PRIIPs KIDs 2023 documents.
PRIIPs manufacturers, including AIF funds that have been producing the first generation PRIIPs KIDs (“PRIIPs 2018”), have also upgraded to the PRIIPs KIDs 2023.
For distribution to investors other than retail investors, investment companies and management companies can continue to produce the old UCITS KIID document unless they choose to produce the newest PRIIP KID 2023 instead, which is our recommendation.
The intention of these information documents is to ensure that retail investment clients have a reasonable basis to understand what they are investing their money into, i.e., to protect and inform retail investment clients, help retail investors to compare different products, and understand product features.
The EU further intends to create an equal level playing field for the investment product manufacturers and those advising on or selling these PRIIP products by creating uniform rules on transparency across the EU. EFTA countries are expected to follow these rules too, possibly with some delay; the UK is currently sticking with the old UCITS KIID documents.
Qvonto offers a comprehensive and automated 24/7 cloud solution for PRIIPs manufacturers and distributors. This solution supports the full production of high-quality final PRIIPs KIDs in the 2023 regulatory version. Additionally, we provide UCITS KIIDs documents.
The Qvonto Regulatory SaaS cloud solution is accessible through a standard browser web application. It handles all data processing, analytical calculations, ongoing maintenance, and daily monitoring of PRIIPs II KIDs automatically, minimizing the time required from your business. Onboarding new clients can be completed in days, and new legal entities can be added within a day once the system is operational.
Qvonto ensures a smooth transition for UCITS Funds, AIF Funds, and other PRIIPs manufacturers, meeting the highest demands.
