ESAS PUBLISH RECOMMENDATIONS ON CHANGES TO THE PRIIPS KID

 

ESAs publish their recommendations for Priips Kids here.

 

Key takeaways :

 

• Past performance :

“Taking into account this feedback, as well as the expected 2 year extension of the exemption for UCITS and relevant non-UCITS funds which currently display information on their past performance within the KIID, the ESAs have decided not to propose the inclusion of past performance information in the PRIIPs KID at this stage. ”

• Performance scenarios

“The vast majority of respondents do not favour using risk-neutral expectations, as discussed in the CP, as the anchor for the performance scenarios. The principle reason given for opposing the use of riskneutral expectations is that performance scenarios would not differentiate products linked to 9 different assets. Most respondents who favour a change to the methodology along these lines mentioned the need to consider the risk premia of different asset classes. These respondents see merit in exploring how to specify and include risk premia as part of a wider review of PRIIPs. ”