PRIIPien

PRIIP stands for Packaged Retail and Insurance-based Investment Products. The PRIIPs Regulation is a piece of European Union legislation that aims to improve transparency and consumer protection for retail investors. It mandates that manufacturers and distributors of PRIIPs provide a Key Information Document (KID) to potential investors before they invest. This KID offers standardized, easy-to-understand information about the product's risks, costs, and potential performance. The goal is to allow investors to compare different PRIIPs effectively and make informed decisions.

The scope of PRIIPs includes a wide range of investment products, such as mutual funds, structured products, and certain insurance products with investment elements. The regulation aims to cover products that are accessible to retail investors, meaning individuals who are not considered professional investors. The KID must include details on the product's nature, risks, potential future performance scenarios (including stress scenarios), costs, and the recommended holding period.

The PRIIPs Regulation came into effect on January 1, 2018, replacing previous disclosure requirements for some investment products. It is part of the EU's broader efforts to enhance financial market transparency and investor protection. National competent authorities within EU member states are responsible for supervising the implementation and enforcement of the PRIIPs Regulation. Manufacturers are obligated to ensure the accuracy and completeness of the information provided in the KID, and distributors must ensure that the KID is made available to retail investors in a timely manner.