KIDdokumentti

KIDdokumentti, often referred to as a KID, is the Key Information Document required under the European Union’s PRIIPs Regulation (Regulation (EU) No 1286/2014). It is designed to provide retail investors with clear, concise, and comparable information about a financial product before they invest, helping them understand features, risks, and costs.

The KID applies to packaged retail and insurance-based investment products (PRIIPs) offered to non-professional investors in the EU. Its purpose is to enable easier comparison across different products by presenting essential information in plain language, rather than marketing material.

A KID typically covers what the product is, its objectives and target horizon, and who bears the risks. It includes a risk indicator on a scale from 1 to 7, and illustrative return scenarios showing possible outcomes. It also contains a costs section listing one-off charges, ongoing charges, and incidental costs, as well as other important information such as tax considerations and where to find more details. The document includes practical details like contact information and a reminder that past performance is not a guarantee of future results.

Delivery and maintenance requirements mean the KID must be provided free of charge before purchase and in the official language of the member state. It must be updated at least annually and whenever there are material changes to the product or its terms. The KID is a disclosure tool intended to aid understanding and comparison; it does not constitute personalized financial advice and may not cover every risk or scenario.