Structured
Structured products
"Structured bonds and notes, structured deposits and products whose return depends on an underlying are typical PRIIPs that require a KID."
PRIIPs Regulation: the key information document (KID) for packaged investment products
We help you comply with Regulation (EU) 1286/2014: drafting, reviewing and delivering the key information document (KID) for packaged and insurance-based investment products, with the summary risk indicator, performance scenarios and costs in line with the RTS.
Free consultation
We reply within 24 h
- Maximum KID length
- 3 A4 sides
- Risk indicator scale
- 1 to 7
- KID mandatory for funds (IICs)
- January 1, 2023
- Governing regulation
- Reg. 1286/2014
Services
How we handle PRIIPs compliance
Six building blocks to produce and maintain the key information document (KID) for your PRIIPs, from drafting and the risk and cost calculations to delivery to the investor and review.
KID
Drafting the key information document
We draft the KID following the common template of the PRIIPs Regulation: standardized form and content, plain language and a maximum of three sides of A4-sized paper.
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Reg. 1286/2014KID / DDFRTS3 A4 sides
Calculations
Risk indicator, scenarios and costs
We coordinate the calculation of the summary risk indicator (SRI 1–7), the performance scenarios and the presentation of costs in line with the regulatory technical standards.
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SRIScenariosCosts
Scope
Which products are PRIIPs
We determine whether a product is a PRIIP and therefore needs a KID: structured products, structured deposits, funds, insurance-based investment products or derivatives.
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ScopeExclusions
Funds
Fund KIDs (IICs) since 2023
We guide management companies through the switch from the old UCITS KIID (DFI) to the PRIIPs KID, mandatory for collective investment schemes (IICs) since January 1, 2023.
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IIC / UCITS2023
Delivery
Delivery to retail investors
We define how and when to provide the KID to retail investors, in good time before they enter into the product.
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RetailIn good time
Review
Review, liability and complaints
We set up the regular examination and review of the KID and help prevent the manufacturer’s civil liability for a misleading or inaccurate document.
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ReviewLiability
Scope
Which products need a KID
The KID is mandatory for packaged and insurance-based investment products offered to retail investors. Determining whether a product is a PRIIP is the first step toward compliance.
Funds
Investment funds (IICs)
"Since 2023, collective investment schemes have provided the PRIIPs KID instead of the old UCITS key investor information document."
Insurance
Insurance-based investment products
"Insurance-based products with an investment component, such as unit-linked policies, are PRIIPs and need their own key information document."
Derivatives
Retail derivatives
"Certain derivatives offered to retail investors fall within the scope of PRIIPs; the Regulation itself excludes certain products."
Why it matters
Why is PRIIPs compliance demanding?
The KID is a standardized pre-contractual document that conditions how the product is marketed: without a KID, the product should not be offered to retail investors, and a misleading KID can make the manufacturer civilly liable.
No KID, no sale: the key information document must be provided to the retail investor in good time before they enter into the product.
A misleading KID carries liability: the manufacturer incurs civil liability if the KID is misleading, inaccurate or inconsistent with the legally binding contractual documents.
The calculations are not trivial: the risk indicator, scenarios and costs follow detailed technical methodologies set out in the RTS, which are easy to get wrong.
Reg. 1286/2014
3 A4 sides
The KID is a short, standardized document of no more than three sides of A4-sized paper.
Funds (IICs)
Since 2023
Collective investment schemes have had to provide the PRIIPs KID since January 1, 2023.
Review
Regular
The KID must be examined and revised regularly so that the information remains accurate and up to date.
Do you market PRIIPs to retail investors?
Whether you are a manufacturer or a distributor, it is worth checking whether your products need a KID, whether the risk and cost calculations are done correctly, and whether delivery and review comply with the PRIIPs Regulation.
Frequently asked questions
PRIIPs Regulation: common questions
What is the PRIIPs Regulation?
It is Regulation (EU) 1286/2014 on key information documents for packaged retail and insurance-based investment products. It sets the format and content of the KID and the obligation to provide it to retail investors.
What is the KID, or key information document?
It is a short, standardized pre-contractual document (no more than three A4 sides) that describes the product clearly so that retail investors can understand it and compare it with others. In Spain it is also known as the DDF or DFI.
Which products does it apply to?
To PRIIPs offered to retail investors: structured products, structured deposits, investment funds, insurance-based investment products (unit-linked) or certain derivatives. Article 2 of the Regulation expressly excludes some products.
Who must draw it up and who must provide it?
The PRIIP manufacturer draws up the KID; whoever advises on or sells the product must provide it to the retail investor in good time before the contract is concluded.
What does the KID contain?
Standardized sections, including:
- What is this product? (nature and main features).
- What are the risks and what could I get in return? (SRI risk indicator and scenarios).
- What happens if the manufacturer is unable to pay out?
- What are the costs? And the holding period.
- How can I complain?
Since when has it applied?
The PRIIPs Regulation has applied since January 1, 2018. Funds (IICs/UCITS) had a temporary exemption until December 31, 2022 and have provided the PRIIPs KID since January 1, 2023.
What happens if the KID is misleading?
The manufacturer may incur civil liability if the KID is misleading, inaccurate or inconsistent with the relevant parts of the legally binding pre-contractual and contractual documents.
Who supervises compliance?
The European Supervisory Authorities (ESMA, EIOPA and EBA) at EU level and, in Spain, the CNMV for investment products and the Directorate-General for Insurance and Pension Funds (DGSFP) for insurance-based products.
People also ask
KID, KIID, SRI and review
What is the difference between the PRIIPs KID and the old UCITS KIID?
The UCITS KIID (DFI in Spain) was the key investor information document specific to harmonized funds. Since 2023 it has been replaced by the PRIIPs KID, which has a different format that includes the summary risk indicator and the performance scenarios common to all PRIIPs.
Does the KID replace the prospectus?
No. The KID is a short, complementary pre-contractual document; it does not replace the prospectus or the product’s other contractual documentation, but summarizes it for the retail investor.
What is the summary risk indicator (SRI)?
It is an indicator on a scale of 1 to 7 that summarizes the market and credit risk of the PRIIP, so that investors can compare products easily. It is calculated using the RTS methodology.
How often is the KID reviewed?
The manufacturer must examine the information in the KID regularly and revise the KID when that information is no longer accurate, with the frequency and under the conditions set by the regulatory technical standards.
Do pension plans have a KID?
The PRIIPs Regulation excludes certain pension products from its scope. A case-by-case analysis is advisable, because some products with a savings and investment purpose may still be covered.
In what language is the KID provided?
In one of the official languages of the area where the PRIIP is distributed, or in a language accepted by the authorities of that Member State, so that the retail investor can understand it.
Information documents
KID, KIID and prospectus: comparison
The KID sits alongside other product information documents. We help you produce each one and coordinate them so that they are consistent with each other.
What determines the scope (and cost) of the project
Producing and maintaining the KID depends on the type and number of products, the complexity of the calculations and coordination with the rest of the product documentation.
- Products
- Number and type of PRIIPs (structured products, funds, insurance).
- Calculations
- Risk indicator, scenarios and costs under the RTS.
- Consistency
- How the KID fits with the prospectus and the contractual documentation.
- Review
- Regular examination and updating of the document.
How we run the project
We start from the scope (which products are PRIIPs), coordinate the calculations, draft the KID and leave delivery and review procedures in place.
- Analysis of the scope and the products affected.
- Coordination of the calculations and drafting of the KID.
- Delivery and periodic review protocol.
| Document | PRIIPs KID | UCITS KIID (until 2022) | Prospectus |
|---|---|---|---|
| What it is | Key information on the PRIIP | Key information on the harmonized fund | Full information on the issue |
| Legislation | Regulation (EU) 1286/2014 | UCITS Directive 2009/65/EC | Regulation (EU) 2017/1129 |
| Who prepares it | The PRIIP manufacturer | The fund management company | The issuer / offeror |
| For whom | Retail investor | Fund investor | Investors (offer / admission to trading) |
| Length | Max. 3 A4 sides | Short (2 pages) | Long document |
Indicative table. Since January 1, 2023, IICs have provided the PRIIPs KID instead of the UCITS KIID; the detailed content and calculations follow from Regulation (EU) 1286/2014 and its regulatory technical standards.
Operational guide
How to comply with the PRIIPs Regulation: a practical guide
PRIIPs compliance is not just about drafting a document: you need to determine whether the product is a PRIIP, calculate risk and costs correctly, provide the KID on time and review it. A clear and accurate KID protects both the investor and the manufacturer.
Determine the scope
The first step is to decide whether the product is a PRIIP and therefore needs a KID. The Regulation’s exclusions and the classification of the product shape everything that follows.
Calculate and draft
The risk indicator, scenarios and costs follow RTS methodologies. They are set out in a standardized, clear document of no more than three A4 sides.
Deliver and review
The KID is provided to the retail investor in good time before the contract is concluded and is reviewed regularly so that the information remains accurate and up to date.
10-step PRIIPs compliance checklist
- Scope: confirm whether the product is a PRIIP or is excluded from the Regulation.
- Manufacturer: identify who draws up the KID and who provides it.
- Form: apply the common template and the three-A4-side limit.
- Product: describe "What is this product?" including its legal form.
- Risk: calculate the summary risk indicator (SRI 1–7).
- Scenarios: include the performance scenarios in line with the RTS.
- Costs: present the costs and their effect on return.
- Safeguards: sections on manufacturer default, holding period and complaints.
- Delivery: provide the KID to the retail investor in good time before the contract is concluded.
- Review: examine and update the KID regularly.
If you need to produce or review your KIDs, see our securities market regulation practice area or our prospectus page.
The KID in practice
From scope to KID review
PRIIPs compliance rests on four pieces: classifying the product, calculating risk and costs, drafting and providing the KID and reviewing it. Here is a visual overview of how it works in practice.
1) ClassifyClassify: is it a PRIIP?
The starting point is to decide whether the product falls within the scope of the Regulation and needs a KID, or whether it is excluded.
- Product type
- Exclusions under the Regulation
- Retail investor
2) CalculateCalculate: risk and costs
The summary risk indicator, performance scenarios and costs are calculated using the RTS methodologies.
- SRI 1–7
- Scenarios
- Costs
3) Draft and provideDraft and provide: the KID
The KID is drafted using the common template and provided to the retail investor in good time before the contract is concluded.
- Common template
- Max. 3 A4 sides
- Delivery in good time
4) ReviewReview: accuracy and liability
The manufacturer examines and revises the KID regularly so that the information remains accurate. A misleading or inaccurate KID can give rise to civil liability for the manufacturer.
Tip: keeping a record of each KID review and of its consistency with the prospectus is key if an investor complains.
Quick decisionPractical map: do I need a KID?
Packaged product for retail investors
It is a PRIIP: you must draw up and provide the KID.
Investment fund (IIC)
Since 2023, the PRIIPs KID instead of the old UCITS KIID.
Excluded product
If it falls within one of the Regulation’s exclusions, no KID is required.
PRIIPs playbook
PRIIPs compliance, phase by phase
Scope
Determine whether the product is a PRIIP or is excluded from the Regulation.
Product classification memo.
Drafting
Calculate risk, scenarios and costs and draft the KID using the common template.
KID and spreadsheets for the SRI, scenarios and costs.
Consistency
Check that the KID is consistent with the prospectus and the contractual documentation.
Document consistency check.
Delivery
Provide the KID to the retail investor in good time before the contract is concluded.
Proof of KID delivery.
Review
Examine and update the KID regularly and whenever it is no longer accurate.
Log of KID reviews and versions.
Common PRIIPs mistakes
Spot them before the supervisor does.
- Marketing the product without providing the KID to the retail investor.
- Getting the risk indicator, scenarios or costs wrong.
- A KID that is inconsistent with the prospectus and the contractual documentation.
- Not revising the KID when the information is no longer accurate.
- Exceeding the three-A4-side limit or using unclear language.
Practical glossary
Key concepts of the PRIIPs Regulation
If you manufacture or market PRIIPs, these terms appear in the KID and in your dealings with the CNMV. Understanding them helps you produce the document with sound judgment.
PRIIPBasics
Packaged product
Packaged retail investment product or insurance-based investment product whose return depends on an underlying or on reference values.
Regulation (EU) 1286/2014.
KID / DDFDocument
Key information
Standardized pre-contractual document of no more than three A4 sides that describes the PRIIP so that the retail investor can understand and compare it.
Also called DFI in Spain.
ManufacturerParty
PRIIP manufacturer
The entity that manufactures the PRIIP or changes its risk and reward profile. It is responsible for drawing up the KID.
Civil liability for the KID.
SRIRisk
Summary risk indicator
Indicator on a 1–7 scale that summarizes the market and credit risk of the PRIIP to make comparison easier.
Methodology set out in the RTS.
ScenariosPerformance
Performance scenarios
Projections of how the product could perform under different assumptions, which help the investor understand the range of possible outcomes.
A section of the KID.
CostsTransparency
Product costs
One-off and recurring costs of the PRIIP and their effect on return, presented in a comparable way.
The "What are the costs?" section.
Retail investorRecipient
Retail investor
The client the KID is addressed to; the document must be provided to them in good time before the contract for the product is concluded.
The person the protection is designed for.
RTSLevel 2
Regulatory technical standards
Implementing rules (Delegated Regulation 2017/653 and its revision) that specify the presentation, content and calculations of the KID.
Delegated Reg. (EU) 2017/653.
ReviewMaintenance
Examination and review
The manufacturer’s obligation to review the information in the KID regularly and update it when it is no longer accurate.
Consistency with the prospectus.
Contact
Book a call
Tell us which products you market and we will help you determine whether they need a KID, produce the key information document and coordinate delivery and review.
Regulatory framework of the PRIIPs Regulation: Regulation (EU) 1286/2014 and the RTS
The PRIIPs Regulation is Regulation (EU) 1286/2014 of the European Parliament and of the Council of November 26, 2014 on key information documents for packaged retail and insurance-based investment products. It lays down uniform rules on the format and content of the KID and on its provision to retail investors, and it applies to manufacturers and to persons who advise on or sell such products.
The key information document (KID)
The KID is a short, standardized pre-contractual document (no more than three sides of A4-sized paper) with common sections: what the product is, what the risks are and what I could get in return (with the summary risk indicator and the performance scenarios), what happens if the manufacturer is unable to pay out, what the costs are, how long I should hold the investment, and how I can complain. Its aim is to help investors understand and compare products.
Technical standards and funds
The technical detail is in Delegated Regulation (EU) 2017/653 on the presentation, content, review and revision of the KID, which was later revised as regards the calculations and templates. The Regulation has applied since January 1, 2018; collective investment schemes (IICs/UCITS) had a temporary exemption until December 31, 2022 and have provided the PRIIPs KID since January 1, 2023, replacing the old UCITS key investor information document.
Liability and supervision
The manufacturer may incur civil liability if the KID is misleading, inaccurate or inconsistent with the legally binding contractual documents. Supervision lies with the European authorities (ESMA, EIOPA and EBA) and, in Spain, with the CNMV for investment products and the DGSFP for insurance-based products.
Securities market services
MiFID II and conduct rules
Resources and blog
Official sources
Key legislation, linked to the official text:
- Regulation (EU) No 1286/2014 of November 26, 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)EUR-Lex · Official Journal of the EU
- Delegated Regulation (EU) 2017/653 of March 8, 2017 supplementing Regulation (EU) No 1286/2014EUR-Lex · Official Journal of the EU
- Regulation (EU) 2017/1129 of June 14, 2017 on the prospectus to be published when securities are offered to the public or admitted to tradingEUR-Lex · Official Journal of the EU
Legislation and links reviewed in .