New PRIIPs KIDs in 2023: Key Changes and Implications
Until 2023, UCITS investment funds benefited from a temporary exemption from producing PRIIPs KIDs (Packaged Retail and Insurance-Based Investment Products – Key Information Documents). However, this exemption has now expired, and UCITS funds must provide PRIIPs KIDs for their distributors.
Transition from UCITS KIIDs to PRIIPs KIDs
Previously, UCITS funds issued a simpler document known as the UCITS KIID (Key Investor Information Document). As of 2023, for marketing to retail investors, UCITS KIIDs have been fully replaced by the new PRIIPs KIDs.
PRIIPs manufacturers, including AIF funds that initially produced the first generation of PRIIPs KIDs in 2018 (“PRIIPs 2018”), have now transitioned to the updated PRIIPs KIDs 2023.
For non-retail investors, investment and management companies may still produce the old UCITS KIID unless they choose to adopt the updated PRIIPs KID 2023, which is recommended for consistency and compliance.
Purpose of PRIIPs KIDs
These documents are designed to protect and inform retail investors by:
Providing clear and comparable product information
Helping investors understand risks, costs, and product features
Ensuring a standardised level of transparency across the EU
The EU aims to create a level playing field for investment product manufacturers, advisers, and distributors by implementing uniform transparency regulations. EFTA countries are expected to align with these rules, though with possible delays. Meanwhile, the UK continues to use the older UCITS KIID format.
Qvonto’s PRIIPs KID Solution
Qvonto offers a fully automated 24/7 cloud solution for PRIIPs manufacturers and distributors, supporting the production of high-quality PRIIPs KIDs.
Our Qvonto Regulatory SaaS platform operates via a standard web browser and manages:
Data processing and analytical calculations
Ongoing regulatory updates and compliance maintenance
Daily monitoring and reporting
New client onboarding can be completed in days, and additional legal entities can be integrated within a day once the system is live.
With Qvonto, UCITS Funds, AIF Funds, and other PRIIPs manufacturers can ensure a smooth and compliant transition to the new regulatory requirements.
