As anticipated, the European Commission published a consultation paper on 15 July 2021 requesting to extend the exemption period for the UCITS KIID until 30 June 2022.
This request is justified by the fact, that the current deadline of 31 December 2021 (Article 32(1) of Regulation (EU) No 1286/2014 of PRIIPs) will be impossible to meet. Due to the new methodology for performance scenarios, changes to transaction costs and presentation of costs, look-through requirements and many more – The amount of work required to be compliant would just not fit into such a short time.
Needless to say, IT systems need to be extensively adapted before the deadline, as this regulation affects many areas, such as a significant change in MiFID Target Market (in most cases, the risk of the UCITS will change on the 1 to 7 scale).
Already on 03 February 2021, the ESAs submitted their drafts for the new PRIIPs RTSs. This amendement, which was originally scheduled to come into force on 01 January 2022, is also expected to be postponed to 01 July 2022 – aligned with the new expiry date of the UCITS exemption. This will allow the implementation of the new PRIIPs RTS and the move of UCITS into PRIIPs in one combined delivery.
The new timeline facilitate the transition of UCITS KIID to PRIIPs KID and gives the industry more room to be ready for the PRIIPs version 2. Due to the extensive processes involved, it is advisable to tackle the conversions early on.
The acarda platform for regulatory reporting already covers the new calculation methods for performance, risk and costs. Our clients only need to provide raw data such as portfolio composition, transactions, fund data and descriptions. Our experts take care of all further steps necessary for the implementing the PRIIPs reform.
We will be happy to advise you on more details
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