The objective of the PRIIPS initiative is to improve the protection of retail investors in the field of financial services so that investors would be able to choose their financial products based on clear and reliable information. The PRIIPs Regulation and the elaborating level 2 measures prescribe in particular the information to be given on the investment products.
A retail investor means an investor other than a professional client under the MiFID. Professional and non-professional clients are defined in chapter 1, section 23 of the Act on Investment Services (747/2012, in Finnish).
The PRIIPs Regulation applies to service providers producing and offering PRIIPs products to retail investors. These include banks, insurance companies, management companies and alternative investment fund managers and bond issuers.
Service providers must prepare a Key Information Document (KID) for each product. The KID provides information on the key features of the investment product as well as related risks and costs. The document must contain information on, among other things, whether the product can give rise to losses and on how complex the product is.
A KID must be prepared for the following products, for example:
- alternative investment funds
- structured retail market products (including structured deposits)
- insurance policies used for investing and saving
- investment funds.
Transition period for investment funds (UCITS)
The transition period under PRIIPS regulation for UCITS funds comes to an end on 1 January 2013. The PRIIPS Regulation originally included a transitional provision for UCITS funds and alternative investment funds provided to non-professional clients. According to the transitional provision, there was no need to prepare a Key Information Document under the PRIIPS Regulation on these types of funds. However, they have been subject to an obligation to prepare a Key Investor Information Document under UCITS regulation.
The transition period for investment funds was extended from the original date until 31 December 2022 by Regulation (EU) 2021/2259 of the European Parliament and of the Council.
Application and timetable
The application of the Regulation began on 1 January 2018.
- PRIIPs Regulation (EU) No 1286/2014 (pdf)
- Working group memorandum (in Finnish)
- Consultation and opinions in the Hare project register of the Council of State (in Finnish)
- Government Bill, in Finnish and in Swedish (pdf)
- Amendments of Act on the Financial Supervisory Authority, in Finnish (pdf) and in Swedish (pdf)
- Amendments of Act on Alternative Investment Fund Managers, in Finnish (pdf) and in Swedish (pdf)
On the presentation, content, review and revision of key information and the conditions for fulfilling the requirement to provide such documents
- Commission Delegated Regulation (2017/653) (pdf)
- Corrigendum (pdf)
- Commission Delegated Regulation (2021/2268)
Commission Delegated Regulation on product intervention, (C(2016) 4369)
- Commission Guidelines on the application of the PRIIPS Regulation, (2017/C 218/02) (pdf)
- Q&As published by the European supervisory authorities (EBA, EIOPA, ESMA) (pdf)
- 14 February 2019 – 1/2019 Thematic evaluation of key information documents required by PRIIPs regulation (pdf)
- 25 January 2018 – 1/2018 Provision of a key information document required by PRIIPs regulation in the English language under certain circumstances (pdf)
- 19 December 2017 – 1/2017 19 December 2017 – 1/2017 Key Information Document must be prepared in Finnish or Swedish (pdf, in Finnish)
- A guide to investor protection – PRIIP and MiFID
Blog by Jarmo Parkkonen, 25 January 2018 (in Finnish)
- Submission to Financial Supervisory Authority of Key Information Documents required by PRIIPs regulation – regulation enters into force on 1 January 2018 (Supervision Release 27 November 2017)
- Komission PRIIPS-sivut
- Delegoitujen EU-säädösten rekisteri