New standards for PRIIPs-KIDs as of July 01, 2022

The EU Commission now plans to launch PRIIPs-KIDs on July 1, 2022. The aim is to adopt the draft amendment to the regulatory technical standard (RTS) in June 2021, as the transmission of the revised RTS to the EU Commission and the translation of the RTS into all official languages will take time and therefore the RTS can probably only be published in Q4 2021. Originally intended to enter into force in January 2022, the extended timeframe will give product providers, advisors and regulators more time to carefully implement the requirements. This relates in particular to the new performance calculations and transaction costs. The estimation method can continue to be used until 2024, but it should be verified by the firms’ own transactions, which corresponds with building a history of market prices. Until the PRIIPs KIDs are implemented, the UCITS-KIIDs will continue to be used. There will also be a technical correction to the UCITS Directive, the Commission said, to align information about a fund that is paralleled by UCITS-KIIDs and PRIIPs-KIDs, as this would cause confusion for investors and advisors.

The new RTS buys us time, but asset managers should still prepare in time for the changeover and market price or arrival price method for transaction costs. Our acarda regulatory reporting platform already covers the new risk, performance and cost calculations. With the same data set, even cost-effective additional reports and data set such as KIDs, SFDR documents, TPT, CRR, AIFMD, VAG and SFDR EET can be generated. Thus, you centralize data management and at the same time reduce time and costs to a minimum – while maximizing the efficiency of all processes,”, says acarda CEO Gerhard Jovy and adds: “Our customers only need provide raw data such as portfolio composition, transactions, fund data and descriptions and we take care of implementing the PRIIPs reform and other desired reports.”

More about the specifics of the acarda solution can be found here.