Reviewing the Key Information Documents (KIDs)
In January 2018 two upgraded frameworks were introduced — the Markets in Financial Instruments Directive (MiFID) II and the regulation of Packaged Retail Investment and Insurance-based Products (PRIIPs).
The MiFID II concentrates on investor protection, and the Key Information Documents (KIDs) under the PRIIPs regulation aim to define the pre-trading rules of each investment product for the retail investors to make informed investment decisions. The KIDs must be clearly distinguished and separated from any marketing materials. The details of the KIDs provided by the product manufacturers to the distributors must be published on their website. Despite the fact that the KIDs are under a separate regulation of MiFID II, they complement the enhanced product governance, the appropriateness assessment and the best execution responsibilities of the investment firms.
CySEC released — for the first time since the KIDs requirement introduction a year and a half ago — their findings for their implementation by investment firms (CIFs) in Cyprus. By publishing their findings, the regulator aims to ensure all firms act in compliance and in accordance with the law. In this article we discuss the results of the review and provide tips for the firms to ensure compliance with the PRIIPs regulation.
Read More…
