Published: 24th April 2017

PRIIPs: Implementation Date Confirmed

Of Relevance to:
Most firms providing investments or investment services to retail investors, including AIFMs, UCITS Management Companies and the Authorised Fund Managers of NURS


Firms involved in Packaged Retail and Insurance-based Investment Products (“PRIIPs”) will be aware of the delay in the date of application of the PRIIPs Regulation – see Regulatory Roundup 82.

As a reminder, at its heart the PRIIPs Regulation – which applies to both PRIIPs ‘manufacturers’ and to those that advise on or sell such products – is to help investors better understand and compare the key features, risks, rewards and costs of different PRIIPs by way of a Key Information Document (“KID”) as per Articles 5 and 13 of PRIIPs Regulation:

“Before a PRIIP is made available to retail investors, the PRIIP manufacturer shall draw up for that product a key information document in accordance with the requirements of this Regulation and shall publish the document on its website” and

“A person advising on, or selling, a PRIIP shall provide retail investors with the key information document in good time before those retail investors are bound by any contract or offer relating to that PRIIP”.

PRIIPS was intended to apply from 31 December 2016 but, following the European Parliament’s rejection of the all-important (original) Regulatory Technical Standards (“RTS”), the European Commission was forced to propose an extension of one year to the date of application of the PRIIPs Regulation.

The final agreed RTS (Delegated Regulation 2017/653) has now been published in the Official Journal meaning that the one obstacle to the application of PRIIPs Regulation has been removed. The Annexes provide the important information that firms will have been waiting for including, but not limited to:

  • KID Template
  • Methodology for the presentation of risk
  • Presentation of Summary Risk Indicator
  • Methodology for the calculation of, and presentation of, costs

For the avoidance of doubt, the RTS, and hence PRIIPs Regulation, will apply from 1 January 2018, although note that Article 14(2) – which allows UCITS Management Companies to continue to continue to use a Key Investor Information Document (“KIID”) (see COLL 4.7.2) – applies until 31 December 2019. Note that the FCA intends to offer this route in respect of non-UCITS retail schemes (“NURS”) where the authorised fund manager has elected to provide a NURS KII document.

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