Level 3 and 4 measures relating to the Commission Delegated Regulation on Key Information Documents (“KIDs”) for Packaged Retail and Insurance-based Investment Products (“PRIIPs”) were published at the beginning of July.

On July 4th 2017, the European Supervisory Authorities (ESAs) published a Q&A on the PRIIPS KID (“ESA Q&A”). The ESA Q&A aims at promoting common supervisory approaches and practice in the implementation of the KID. It deals with questions linked with the presentation, content and review of the KID including the methodologies underpinning the risk, reward and costs information.

In addition, the European Commission issued guidelines on the Level 1 PRIIPS Regulation (Regulation 1286/2014) (“Guidelines”).
The objective of these Guidelines is to facilitate the implementation of the PRIIPs Regulation by clarifying the interpretation of the Level 1 requirements and mitigating as far as possible the difference of interpretation between the European Member States. This clarification touches different areas such as multi option PRIIPS, territorial application and running offers. The Guidelines make clear that where a PRIIP is no longer made available to retail investors as of January 1st 2018 and changes to the existing commitments are only subject to the contractual terms and conditions agreed before that date, a KID is not required. Neither is it required where those contractual terms and conditions allow exiting the PRIIP but that PRIIP is no longer made available to other retail investors after January 1st 2018. 

The CSSF published on July 6th 2017 the latest version of its Frequently Asked Questions relating to AIFMD with a new section specially dedicated to the impact of PRIIPs KID. The CSSF has clarified or has developed several points. For further information please see above AIFMD Updated CSSF FAQ.

The CSSF has, in addition, published an additional Q&A relating to SIFs and SICARs that do not qualify as alternative investment funds. They clarify that the PRIIPS Regulation does apply to such funds if their units are being advised on, offered or sold to retail investors.