Last Updated on June 10, 2025 by Arnaud Collignon
Understanding the PRIIPs KID: Key Questions and Answers
The Packaged Retail and Insurance-based Investment Products (PRIIPs) Key Information Document (KID) is designed to provide essential information to retail investors. This document aims to enhance transparency and help investors make informed decisions. Below, we address some common questions regarding the PRIIPs KID based on the latest guidance from the CSSF.
What is the PRIIPs KID?
The PRIIPs KID is a standardized document that outlines the key features, risks, and costs associated with investment products. It is intended to be clear and concise, allowing investors to compare different products easily.
Who is required to provide a PRIIPs KID?
- Manufacturers of PRIIPs, including investment firms and insurance companies.
- Distributors of PRIIPs must ensure that a KID is available to retail investors before they invest.
What information does the PRIIPs KID contain?
The KID includes the following key sections:
- Product Overview: Basic information about the product.
- Risk and Reward Profile: An assessment of the potential risks and rewards associated with the investment.
- Costs: A breakdown of all costs involved in the investment.
- Past Performance: Information on the product’s historical performance, if applicable.
- Practical Information: Details on how to obtain further information and contact the manufacturer.
How is the PRIIPs KID structured?
The KID is structured to facilitate easy understanding, featuring:
- Clear headings and subheadings.
- Visual aids, such as graphs and tables, to illustrate key points.
- A standardized format to ensure consistency across different products.
Where can I find more information?
For further details and specific guidance, you can refer to the following resources:
Understanding the PRIIPs KID is crucial for making informed investment decisions. By familiarizing yourself with its contents and structure, you can better navigate the investment landscape.