ESA letter to Commission on PRIIPS KID requirements
On 1 October 2018, the European Supervisory Authorities (ESAs) published a response to the European Commission’s request to develop guidance on facilitating the production and distribution of information on investment funds.
It is stated in the response that the ESAs are still of the view that an approach whereby retail investors will receive both PRIIPs key information documents (PRIIPs KID) and UCITS key information documents (UCITS KID) as of 1 January 2020, is not satisfactory and risks undermining the aims of the PRIIPs Regulation.
The ESAs also warn that receiving overlapping disclosure documents could deter investors from using them rather than facilitating informed investment decision making.
The ESAs argue that other solutions are needed to avoid a situation where there are duplicative information requirements from 1 January 2020. In addition, the ESAs call for a targeted review of the PRIIPs Delegated Regulation 2017/653.