PACKAGED RETAIL AND INSURANCE-BASED INVESTMENT PRODUCTS REGULATION (PRIIPS)
PRIIPs regulation aims is to improve the comprehensibility and comparability of Packaged Retail and Insurance-based Investment Products (PRIIPs), ensuring adequate disclosures are provided when products are sold to retail investors.
A disclosure document called a Key Information Document (KID) has to be produced for each eligible product and has to be available before the product is sold to retail investors. Where a PRIIP is not going to be sold to retail investors, a KID does not need to be produced. The KID is a short summary of the product which should be easily understandable to a retail investor. It contains answers to key questions retail investors may have on features, risks and the costs of the products. The key information document shall be a stand-alone document, clearly separate from marketing materials and shall be written in the official languages, or in one of the official languages, used in the part of the Member State where the PRIIP is distributed, or in another language accepted by the competent authorities of that Member State.