The EU regulation on "packaged retail and insurance-based investment products" (PRIIPs) serves to protect retail investors in transactions with packaged investment products.
The Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, effective January 1, 2018, is a set of rules implemented by the European Union to enhance transparency and protect retail investors.
The regulation requires manufacturers and sellers of investment products, such as funds, insurance-based investments, and structured products, to provide a standardized document called a Key Information Document (KID) to retail investors.
Regulatory authorities in the EU have the power to impose significant fines on companies that fail to comply with the PRIIPs Regulation. These fines can vary depending on the severity of the breach, the size of the institution, and the jurisdiction.
Financial institutions face challenges in accurately calculating and presenting risk, cost, and performance data in a way that complies with the regulation. The complexity of some products can make this task particularly difficult. The continuous updates of requirements and the regulatory uncertainty can be burdensome for product providers, especially in a volatile market environment.
cleversoft provides services tailored to your industry to reduce compliance risks, decrease workload, and increase transparency within your organization and to your customers. We guarantee full PRIIP compliance, including free updates for all current and future regulations.
KID Compliance Services