European Supervisory Authorities publish Q&A on the Key Information Document (KID)
The Joint Committee, European Supervisory Authorities (ESAs), a forum with the objective of strengthening cooperation between the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) has issued an announcement to make publish Q&A on the Key Information Document (KID).
According the announcement:
The European Supervisory Authorities (ESAs) published the first set of Questions and Answers (Q&A) related to the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs) laid down in the European Commission Delegated Regulation (EU) 2017/653. This Q&A document aims at promoting common supervisory approaches and practices in the implementation of the KID.
The Q&A document includes answers to questions linked with the presentation, content and review of the KID, including the methodologies underpinning the risk, reward and costs information. These questions were raised by different stakeholders, such as product manufacturers and distributors.
The ESAs will continue to answer further questions and will subsequently publish them.
Stakeholders are invited to submit any new questions to the following address PRIIPs@eiopa.europa.eu.
The KID is a mandatory, three-page A4 information document to be provided to consumers before purchasing a Packaged Retail and Insurance-based Investment Products (PRIIPs). PRIIPs include for example funds, structured products, unit-linked and with-profits life insurance contracts, and structured deposits. The KID will need to be provided from 1 January 2018.
The rules to be applied to for the use of the KID are outlined in the the Regulation (EU) 1286/2014 published on 9 December 2014. The supporting technical rules are presented by European Commission Delegated Regulation (EU) 2017/653 published on 12 April 2017.
Source: European Supervisory Authorities
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