EBA/EIOPA/ESMA: Regulatory technical standards on KIDs for PRIIPs

The ESAs have finalised the standards in respect of the above, noting that the new rules address the content and presentation of the KIDs and include the following: a common mandatory three-page template for the KID, covering the texts and layouts to be used; a summary risk indicator of seven classes for the risk and reward section of the KID; aa methodology to assign each PRIIP to one of the seven classes contained in the summary risk indicator, and for the inclusion of additional warnings and narrative explanations for certain PRIIPs; •details on performance scenarios and a format for their presentation; costs presentation; specific layouts and contents for the KID for products offering multiple options that cannot effectively be covered in the short template; rules on revision and republication of the KID and rules on timeliness of the PD so that a retail investor may take its contents into account when making an investment decision. The rules come into force on 31 December 2016.