January 1st, 2018 the PRIIPs KID regulation entered into force, requiring Fund Managers to issue a KID (Key Information Document) for each fund and share class they manage. Currently UCITS funds are exempted from PRIIPs regulation, instead they are required to have a UCITS KIID (Key Investor Information Document) in place. Starting January 1st 2020 UCITS Fund Manager are no longer exempted and are required to have more elaborate PRIIPs KID Document in place.
PRIIPs KID documents are targeted at retail investors. Funds aiming solely at professional investors are not required to issue a KID document but are recommended to be explicit about that in their offering documents.
There are significant differences between the PRIIPs KID and UCITS KIID documents, requiring Fund Managers to start planning the conversion and start collecting the required data. The table below list the main difference:
|Sections||PRIIPs KID||UCITS KIID|
|Document format||7 sections|
|Product Information||Product description; type of PRIIP, objectives, type of retail investor, details of insurance benefits (if applicable) and term||Description of product’s objectives and investment policy|
|Performance||Future scenario||Past performance|
|Risk indicators & Performance calculations||Four PRIIPS categories to determine market risk|
Market Risk Measure (MRM)
Credit Risk Measure (CRM)
Summary Risk Indicator (SRI)
|Synthetic Risk and Reward Indicator (SRRI)|
|Manufacturer default||Clarification on financial loss due to the default of the manufacturer and guarantees if applicable||N/A|
|Costs / charges / fees||Summary cost indicator of the costs and its effect on the Yield, listing one-off costs, recurring costs and relevant incidental costs||Charges including entry charges, exit charges, ongoing charges, performance fees|
|Holding period||Recommended holding period, disinvestment procedure and any related fees and/or penalties||N/A|
|Complaint||Complaint procedure and contact information||N/A|
|Other relevant information||Information on where and how other documents can be obtained||Information on where and how to obtain further information about UCITS|
Matterhorn assists both AIFMD and UCITS Fund Managers by creating the KID/KIID documents and calculating the required performance and risk indicators. If you would need assistance, please contact us!