Retail legislation


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.


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