On 16 October 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a consultation paper setting out proposed amendments to existing rules underpinning the key information document (KID) for packaged retail and insurance-based investment products (PRIIPS).

The main aims of the review are to: address issues that have been identified by stakeholders and supervisors since the implementation of the KID in 2018; and make specific changes to allow the rules to be applied to UCITS that are expected to have to prepare a KID from 1 January 2022 onwards.

The consultation paper proposes amendments relating to the following areas:

  • illustrations of what the retail investor might receive in return from their investment (performance scenarios);
  • information on what the costs of the investment are;
  • specific issues for different types of investment funds; and
  • specific issues for PRIIPs offering a range of options for investment (so-called ‘Multi-Option Products’).

As part of this review, the European Commission is carrying out a consumer testing exercise to assess the effectiveness of different presentations of performance scenarios. The results are expected to be published in the first quarter of 2020. The ESAs, in consideration of their final proposals, will take into account the feedback from this consultation as well as the results of the consumer testing exercise.

The deadline for comments to the consultation is 13 January 2020.