PRIIPs (Packaged Retail and Insurance-based Investment Products Regulation)

Concept

The PRIIPs Regulation (Packaged Retail and Insurance-based Investment Products) requires providers of so-called packaged retail investment products, particularly including unit-linked life insurance with an investment component, to produce a standardized key information document (KID) of no more than three pages, which must be provided to the client before the contract is concluded.

Content of the Key Information Document

The key information document must present, in a clear and standardized form, key product characteristics, including the risk-reward profile using a uniform summary risk indicator, potential performance scenarios under different market conditions, all costs associated with the product, and information on the recommended holding period and cancellation options.

Relevance for Product Comparability

The PRIIPs Regulation pursues the goal of making different packaged retail investment products – from unit-linked insurance to investment funds to structured securities – more easily comparable for retail clients through a uniform, cross-product format; it thus complements the advisory documentation required under the Insurance Distribution Directive (IDD) with a standardized, product-specific information instrument.