Upcoming changes to PRIIPS KIDs effective 1 January 2023
21st December 2022
Following the expiry of the transitional arrangement that allowed investment funds to provide UCITS KIDs when marketing their funds to retail investors in the EEA, PRIIP manufacturers and persons advising on or selling PRIIPs will have to provide PRIIPs KIDs to retail investors from 1 January 2023.
When is a PRIIPs KID needed?
For EEA UCITS and AIFs PRIIPs KID must be provided to retail investors. However, it will still be possible to provide the UCITS KID to professional investors.
According to the FCA statement, UCITS KIID must be made available to any category of investors until 31 December 2026 for EEA UCITS.
Any foreign UCITS fund registered with FINMA for public offering that does not provide a Swiss KID, a (European) PRIIPs KID in an official Swiss language, in English or in the language used for correspondence with the client must be provided.
Alternative funds, or UCITS funds not registered with FINMA for public offering, are still required to provide any documents they produce in their home jurisdiction, PRIIPs KIDs or UCITS KIIDs included, to their Swiss clients.
PRIIPs KIDs must be updated at least once every 12 months, following the date of the initial publication, as opposed to mid-February UCITS KIID update.
For more information, please refer to the requirements for PRIIPs KIDs laid down in Regulation (EU) 1286/2014 (PRIIPs Regulation) and the supplementing regulatory technical standards (RTS) in Regulation (EU) 2017/653.
Alternatively, please contact us and we will be happy to help you.