Getting Started With PRIIPs: What You Need to Know
An Introduction to PRIIPs
Packaged Retail Investment and Insurance Products (PRIIPs) encompass a broad range of financial products available to retail investors. The European PRIIPs market is estimated to exceed EUR 20 trillion, covering investment funds, structured products (including convertible bonds), unit-linked insurance products, derivatives, and more. However, shares and futures traded on regulated financial markets are not considered PRIIPs.
Understanding PRIIPs
The concept can be simplified: if two shares are combined into a new product for sale to retail investors, that new product—comprising the two shares—qualifies as a PRIIP. A PRIIP always derives its value from underlying assets, meaning its price fluctuates over time and carries investment risk.
To protect retail investors, the EU and EFTA countries regulate PRIIPs through a dedicated framework. This regulation ensures transparency and safeguards investor interests by requiring PRIIP distributors to provide a concise document detailing key product information.
The Key Information Document (KID)
One of the key regulatory requirements is that PRIIP manufacturers must supply retail investors with a Key Information Document (KID). This short document provides essential details about the PRIIP, including:
Investment objectives
Risks and opportunities
Cost structure
Intended investor profile
Recommended holding period
Qvonto’s Automated PRIIP KID Solution
At Qvonto, we have developed Qvonto Regulatory, a fully automated system designed to streamline PRIIP manufacturing and compliance. With just a click or through automated workflows, our solution generates the final PRIIP KID in PDF format, ensuring efficiency and regulatory adherence.
For PRIIP manufacturers seeking seamless compliance, Qvonto offers a reliable and comprehensive solution to meet all regulatory requirements effortlessly.
