{"id":17757,"date":"2022-09-17T20:02:11","date_gmt":"2022-09-17T20:02:11","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17757"},"modified":"2022-09-25T14:03:37","modified_gmt":"2022-09-25T14:03:37","slug":"key-information","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/key-information\/","title":{"rendered":"Key Information [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/key-information\/#Key_information_about_investment_products\" title=\"Key information about investment products\">Key information about investment products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/key-information\/#Key_information_for_retail_investors\" title=\"Key information for retail investors\">Key information for retail investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/key-information\/#Investment_products_covered\" title=\"Investment products covered\">Investment products covered<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/key-information\/#Delegated_acts\" title=\"Delegated acts\">Delegated acts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/key-information\/#Application_Background\" title=\"Application &amp; Background\">Application &amp; Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/key-information\/#MAIN_DOCUMENT\" title=\"MAIN DOCUMENT\">MAIN DOCUMENT<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Key_information_about_investment_products\"><\/span>Key information about investment products<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1286\/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs)<\/p>\n<p>It obliges those who produce or sell investment products to provide retail investors with key information documents (KIDs) about the products.<br \/>\nThe aim is to help investors to understand and compare the key features and risks of these products.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_information_for_retail_investors\"><\/span>Key information for retail investors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The producer of an investment product intended to be sold to retail investors has to provide a KID concerning the product. Those selling or advising on these investment products have to provide the KID to an investor before any agreement is made.<br \/>\nKIDs should be a maximum of three pages long and provide clear information on a product, allowing the investor to take an informed investment decision.<\/p>\n<p>KIDs should include the following information:<br \/>\nthe name of the product and the identity of the producer;<br \/>\nthe types of investors for whom the financial product is intended;<br \/>\nthe risk and reward profile of the financial product, which includes a summary risk indicator, the possible maximum loss of invested capital and appropriate performance scenarios of the product;<br \/>\nthe costs to be borne by the investor associated with the investment in the financial product;<br \/>\ninformation about how and to whom an investor can make a complaint where there is a problem with the product or the person producing, advising on or selling the product.<br \/>\n\u2018<\/p>\n<p>Comprehension alert\u2019 for investment products that are difficult to understand<\/p>\n<p>When an investment product is very difficult to understand, the provider has to ensure the KID contains the following warning: \u2018You are about to purchase a product that is not simple and may be difficult to understand\u2019.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Investment_products_covered\"><\/span>Investment products covered<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The rules apply to packaged retail and insurance-based investment products (also known as PRIIPs). These are a standard range of investment products typically offered by a bank or financial advisers to consumers, for example, in order to save for a specific objective such as a house purchase or a child\u2019s education.<br \/>\nThey include investment funds, insurance-based investment products, retail-structured securities, structured deposits and structured products.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Delegated_acts\"><\/span>Delegated acts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Delegated Regulation (EU) 2017\/653, as amended by Delegated Regulation (EU) 2021\/2268, supplements Regulation (EU) No 1286\/2014.<br \/>\nIts Annex I establishes a common template for the KID describing the purpose of the investment product to help investors understand the nature, risks, costs (entry\/exit, ongoing and incidental costs), potential gains and losses of the product, and help them compare it with other products.<\/p>\n<p>The KID must provide information such as:<br \/>\nthe name of the product and manufacturer, type of PRIIP, its investment objectives, intended retail investor;<br \/>\nrisks and return \u2013 a risk indicator including the risk and reward profile, a summary risk indicator, summary-risk-indicator-related narratives, including on possible maximum loss, and performance scenario templates and narratives;<br \/>\nwhat happens if a PRIIP manufacturer is unable to pay out (information about the guarantee \/ compensation scheme, the risks covered and those not covered);<br \/>\ncosts over time and the composition of costs;<br \/>\nthe recommended holding period and information about disinvesting before maturity and applicable fees\/penalties, if appropriate;<br \/>\nhow a retail investor can lodge a complaint.<\/p>\n<p>Other aspects are addressed in subsequent annexes:<br \/>\nAnnex II \u2013 methodology for presenting risk;<br \/>\nAnnex III \u2013 presentation of the summary risk indicator;<br \/>\nAnnex IV \u2013 performance scenarios;<br \/>\nAnnex V \u2013 methodology for presenting performance scenarios;<br \/>\nAnnex VI \u2013 methodology for calculating costs;<br \/>\nAnnex VII \u2013 presentation of costs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Background\"><\/span>Application &amp; Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It has applied since 1 January 2018.<\/p>\n<p>For further information, see:<\/p>\n<p>Key information documents for packaged retail and insurance-based investment products (PRIIPs) (European Commission).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENT\"><\/span>MAIN DOCUMENT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1286\/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) (OJ L 352, 9.12.2014, pp. 1\u201323).<\/p>\n<p>Successive amendments to Regulation (EU) No 1286\/2014 have been incorporated into the original document. This consolidated version is of documentary value only.<\/p>\n<p>RELATED DOCUMENTS<br \/>\nCommission Delegated Regulation (EU) 2017\/653 of 8 March 2017 supplementing Regulation (EU) No 1286\/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents (OJ L 100, 12.4.2017, pp. 1\u201352).<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17757\" data-postid=\"17757\" class=\"themify_builder_content themify_builder_content-17757 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Key information about investment products Regulation (EU) No 1286\/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) It obliges those who produce or sell investment products to provide retail investors with key information documents (KIDs) about the products. The aim is to help investors to understand and compare the key features [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[128,167],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17757"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17757"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17757\/revisions"}],"predecessor-version":[{"id":18368,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17757\/revisions\/18368"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}