NonPRIIPs

NonPRIIPs are financial products that do not fall within the scope of the European Union’s PRIIPs Regulation (Regulation (EU) 1286/2014). The PRIIPs Regulation requires a standardized Key Information Document (KID) to be provided to retail investors for packaged retail and insurance-based investment products. By contrast, non-PRIIPs are not packaged as retail investment products, or are marketed only to professional clients, or otherwise fall outside the Regulation’s scope. As a result, issuers and distributors of non-PRIIPs are not obligated to produce a PRIIPs KID for those products.

Scope and examples: Examples of non-PRIIPs include plain-vanilla financial instruments such as individual shares and standard bonds, money-market instruments that are not packaged as investment products, and other instruments offered exclusively to professional clients or not marketed to retail investors. Some contracts or arrangements without an investment component or with a different regulatory treatment may also be non-PRIIPs. Non-PRIIPs may still be subject to other EU or national disclosure requirements, such as the Prospectus Regulation, MiFID II, or consumer protection rules, depending on the product and the jurisdiction.

Regulatory implications: Because they are outside PRIIPs, non-PRIIPs do not require a KID under the PRIIPs Regulation. However, cross-border sales, product governance, and disclosure obligations may still apply under other regimes, and classification as non-PRIIP can affect how the product is marketed and sold to different investors.

See also: PRIIPs, Key Information Document, Prospectus Regulation, MiFID II.