PRIIPS

Since 2018, investors in the EU have received a basic information sheet with the most important features, such as the costs and risks of an investment, before purchasing a packaged retail and insurance-based investment product (PRIIPs; this includes funds, capital-forming life insurance policies and certificates). However, mutual funds may make an exception to this until the end of 2021. Until then, the established "key investor information" will apply to them. BVI has lobbied hard for this exception. The reason: deficiencies in the PRIIPs information sheets, especially in the specifications on costs and performance.

The European Commission is once again delaying the introduction of PRIIPs for funds

The European Commission published the regulatory details originally promised for June 2021 as late as the beginning of September 2021. This means that fund companies will no longer have sufficient time to implement the new regulations by the scheduled end of the exemption on 30 June 2022. BVI has been pointing out for years that at least twelve months are needed for a proper legal analysis and technical implementation of the PRIIPs information for thousands of UCITS.

In light of that delay, BVI calls for a further extension of the exemption for UCITS to produce the PRIIPs KID by six months until the end of 2022. Accordingly, the UCITS KID should be replaced by the PRIIPs KID on 1 January 2023. Furthermore, BVI advocates that no PRIIPs KIDs have to be provided for professional investors in the future.

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