The Joint Committee of the European Supervisory Authorities (ESAs) has published a consultation paper giving stakeholders the opportunity to comment on the draft regulatory technical standards (RTS) that it has produced under the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (the PRIIPs Regulation).

The draft RTS relate to three articles under the PRIIPs Regulation:

• the presentation and content of the Key Information Document (KID), including methodologies for the calculation and presentation of risks, rewards and costs within the document, under Article 8(5);
• the review, revision and republication of KIDs, under Article 10(2); and
• the conditions for fulfilling the requirement to provide the KID in good time, under Article 13(5).

In particular, the consultation paper sets out details on the proposed requirements to be included in the preparation of the KID, these include:

• a common mandatory template for each KID, including the texts and layouts to be used;
• a summary risk indicator of seven simple classes for the risk and reward section of the KID;
• a 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, including possible performance for different time periods and at least three scenarios;
• costs presentation, including the figures that must be calculated and the format to be used for these, i.e. in both cash and percentage terms;
• specific layouts and contents for the KID for products offering multiple options that cannot be effectively covered in three pages;
• the revision and republication of the KID, to be done at least annually; and
• the KID must be provided sufficiently early for a retail investor to be able to take its contents into account when making an investment decision.

The deadline for comments on the consultation paper is 29 January 2016. The RTS and accompanying impact assessment will be submitted for endorsement by the European Commission by 31 March 2016. The ESAs will also publish final feedback on the consultation at this time.

By 1 January 2017, PRIIPs manufacturers must prepare and publish KIDs for each PRIIP they manufacture, and from that date those selling or advising on these PRIIPs must provide KIDs to retail investors.

View ESAs consult on PRIIPs key information for EU retail investors, 11 November 2015