The KID-PRIIPS (Key Information Document for Packaged Retail Investment and Insurance-based Products) Regulation requires fund managers who sell investment products to retail investors to produce a three-page document detailing the risk profile as well as the expected performance of the product and to disclose costs these investors would face when investing.
The Regulation, adopted in the summer of 2014, is in application since January 2018. Retail investors as defined in MIFID2/MIFIR are likely to include some traditional investors in private equity such as high-net-worth individuals or family offices.
Some technical aspects of the KID (performance scenarios, interaction with UCITS KII) are currently under review but changes to the scope of the Regulation should not be expected until 2020.
Invest Europe Position
Although the investor base of private equity funds is mostly composed of institutional investors for which no KID will be required, the current EU definition of a retail investor may put some fund managers in a position where they will need to produce such document.
As a result, Invest Europe engaged over the last few years with both European Supervisory Authorities and the European Commission to ensure they properrly calibrate the risk profile and costs of products sold by private equity managers.
Response to ESAs Consultation on KID-PRIIPS >
December 2018, Invest Europe-PAE
Delegated Acts regarding the presentation of the KID >
March 2017, European Commission
Response to ESAs Consultation on KID technical standards >
January 2016, Invest Europe PAE
Response to ESAs Technical Discussion Paper >
August 2015, Invest Europe-PAE
KID-PRIIPS Regulation >
November 2014, European Commission