ESAs propose amendment to PRIIPs Key Information Document to clarity application to investment funds

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The amendment clarifies the application of the KID to investment funds where these are offered as underlying investment options to a PRIIP (so-called “multi-option products” or “MOPs”). The amendment follows a recent decision by the European co-legislators to defer the application of the KID to these investment funds by two years from the end of this year until the start of 2022. The aim of the ESAs’ proposal is to provide, in good time, legal certainty to market participants before the expiry of the current provision in the PRIIPs Delegated Regulation at the end of 2019.

Before the draft Regulatory Technical Standards (RTS) become binding, they need to be endorsed by the European Commission followed by a period of scrutiny by the European Parliament and the Council. 

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