The PRIIPs Regulation has applied since 1 January 2018 and aims to help retail investors understand and compare the key features, risks, rewards and costs of different PRIIPs through the provision of a standardised Key Information Document (“KID”) meeting the requirements of the Regulatory Technical Standards (“RTS”). This is a free-of-charge pre-contractual, stand-alone document that is to be shared with the retail investor in the EEA or the UK in good time prior to the conclusion of any transaction.
In 2021, the EU proposed changes to the RTS for PRIIPs. The new RTS for the PRIIPs amendments significantly changes performance scenarios, cost computations and risk disclosures. This decision means that PRIIPs manufacturers are required to incorporate these revisions to the PRIIPs KID from 1 January 2023. In addition, the extended PRIIPs Regulation will bring significant changes to the fund industry. So far, the fund industry has been exempted from PRIIPs Regulation; manufacturers of UCITS funds have had to provide UCITS KIIDs to their clients. However, this exemption ceased as of the end of 2022 and from 1 January 2023, retail investors in the EEA purchasing UCITS funds will need to be provided with a PRIIPs KID.
In parallel to the changes the EU are making, the UK is adopting its own PRIIPs KID Regulation with effect from 1 January 2023 with the introduction of the UK PRIIPs KID for investors in the UK. In addition, the UK regulator is allowing UK or EEA UCITS KIIDs or NURS KII to continue to be produced and made available to UK investors until the end of 2026.
Frequently Asked Questions
PRIIP KIDs microsite
This website http://PRIIPs.hsbcprivatebank.com/ provides you, as a client of HSBC Global Private Banking, with illustrative Key Information Documents (KIDs) for a group of Foreign Exchange and Precious Metal products as required by the PRIIPs Regulation.
Please do not hesitate to contact your Relationship Manager or Investment Counsellor if you require further information.