Last Updated on June 3, 2025 by Arnaud Collignon
Guidelines on the Application of Regulation (EU) No. 1286/2014
The Commission de Surveillance du Secteur Financier (CSSF) has published comprehensive guidelines regarding the application of Regulation (EU) No. 1286/2014, which pertains to key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs). These guidelines are crucial for ensuring that consumers receive clear and concise information about investment products.
Key Objectives of the Guidelines
- Enhance Transparency: The guidelines aim to improve the transparency of investment products, enabling consumers to make informed decisions.
- Standardize Information: By standardizing the information provided in KIDs, the guidelines help ensure consistency across different products.
- Protect Consumers: The ultimate goal is to protect consumers by providing them with essential information in a clear and understandable format.
Scope of the Guidelines
The guidelines apply to all entities involved in the manufacturing and distribution of PRIIPs, including:
- Investment firms
- Insurance companies
- Financial advisors
Key Requirements for KIDs
According to the guidelines, KIDs must include the following elements:
- Product Overview: A brief description of the product and its objectives.
- Risk and Reward Profile: Clear information regarding the risks associated with the investment and potential rewards.
- Costs: A detailed breakdown of all costs involved in the investment.
- Past Performance: Information on the product’s past performance, if applicable.
Implementation Timeline
Entities are encouraged to familiarize themselves with the guidelines and begin implementing the necessary changes as soon as possible. The CSSF emphasizes the importance of compliance to ensure consumer protection and market integrity.
Conclusion
These guidelines represent a significant step towards enhancing consumer protection in the investment sector. By adhering to these standards, financial entities can contribute to a more transparent and trustworthy market.
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