PRIIPs - Overview and FAQs

The PRIIPs Regulation defines a PRIIP as: 

• an investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets which are not directly purchased by the retail investor (a "packaged retail investment product"); or
• an insurance-based investment product, which is an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations (an "insurance-based investment product").

Examples of investments products that we may offer including but not limited to:

• Foreign Exchange ("FX") and Precious Metal ("PM") Transactions such as Forwards, Swaps, Options
• Over The Counter ("OTC") Derivatives such as Interest Rate Swaps
• Exchange Traded Derivatives such as Exchange Traded Options
• Structured Products such as Dual Currency Deposits, Structured Notes
• Fixed Income Products such as CoCos, Sukuks, Convertible bonds
• Equity Products such as Investment Trusts, REITS
• Funds Products such as ETFs, Alternative Investment Funds, Mutual Funds (*UCITS/NURS exemption may apply)

*Undertakings for Collective Investment in Transferable Securities (“UCITS”)/Non-UCITS Retail Schemes (“NURS”)

A KID is a pre-contractual, stand-alone and standardised informative document prepared for each PRIIP according to the RTS, which is made available to retail clients in the EEA* or the UK.  A KID does not replace a Term Sheet.  A KID will be provided prior to the conclusion of any transaction.

*Countries in the European Economic Area (“EEA”): 27 European Union countries (Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden) plus Iceland, Liechtenstein and Norway

A KID will provide you with essential information about costs, potential risks and performance to enable you to better understand the product and make an informed investment decision. You will also be able to compare similar products on their risks, costs and performance. 

The PRIIPs regulation applies to PRIIPs purchased by a retail investor who is located in or is an EEA or UK resident, regardless of their nationality.  The regulation is applicable worldwide.

If you or your authorised Investment Advisor (a Person with written Authority who provides instructions on your behalf) are an EEA resident, we will provide an EEA KID to yourself or to your authorised Investment Advisor. 

If you or your authorised Investment Advisor are an UK resident, we will provide a UK KID to yourself or to your authorised Investment Advisor.  For UCITS or NURS funds, you will receive UCITS KIID or NURS KII until the end of 2026. 

If a KID does not exist for a PRIIP, we are not allowed to offer you the transaction – No KID no trade!

Before concluding a trade, you or your authorised Investment Advisor will receive an email including a KID or a link to the KID.  If a link is provided, you will have access to the most up-to-date document by clicking on the link.

For some FX and PM products, a suite of pre-populated illustrative KIDs has been published on an HSBC Illustrative KIDs website.  If you want to trade a product listed on the website, a link will be provided to you and you will be able to consult a KID at any time, prior to the conclusion of the transaction.

We will give you or your authorised Investment Advisor sufficient time to understand the product features, including the performance, risks and costs set out in the KID. We will confirm with you that you are happy to proceed before we conclude the transaction. You will have the opportunity to delay the transaction if you need more time to read the KID and evaluate the transaction.

In exceptional circumstances, predominantly when trading a custom-tailored OTC Derivative or Securitised Structured Product, a specific KID will need to be created. If you do not wish to delay the transaction and request that we should proceed, we can provide you with a KID post-trade after the conclusion of the transaction, with your explicit consent. In line with the PRIIPs Regulation this is only allowed if the trade has been specifically requested by you and the instruction is given by email, phone or fax.