Our PRIIPs KID Factory and Reporting services

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PRIIPs Reporting Services

Our PRIIPs KID Factory and Reporting services

From the start of 2018, all entities in the EU advising on or selling Packaged Retail and Insurance-based Investment Products (PRIIPs) will be required to provide a Key Information Document (KID) to retail investors. Different stakeholders within the financial industry are impacted, directly and indirectly, bringing key challenges to their business infrastructure and the exchange of data.

Dig into banking & meet the PRIIPs KID family!

What is PRIIPs?

The PRIIPs regulation requires financial institutions to provide their retail investors Key Information Document (KID) when selling or advising on the following range of investment products:

Asset Management

  • Structured deposits (but not deposits linked solely to interest rates)
  • Products with capital and/or return guarantees
  • All investment funds, including UCITS and retail AIF, whether closed ended or open ended
  • Structured deposits (but not deposits linked solely to interest rates)
  • Products with capital and/or return guarantees
  • All investment funds, including UCITS and retail AIF, whether closed ended or open ended

Banking

  • SPVs, holding companies
  • Structured deposits (but not deposits linked solely to interest rates)
  • Products with capital and/or return guarantees
  • Derivative instruments

Insurance

  • Unit-linked life insurance (external funds, FIC, FID, FAS)
  • Certain pension products
  • Guaranteed interest rate products with profit sharing

 

The KID is a stand-alone document of maximum 3 A4 pages comprising of static data, narratives and analytics such as:

  • Type of the product, investment objective, target market, eventual details of the insurance benefit
  • Recommended holding period of the period 
  • The risks related to the PRIIPs and the performances scenarios
  • Overview of the composition of the costs and the resulting reduction in yield

PRIIPs triggers indirect impacts in term of data exchange

The PRIIPs regulation affects the financial industry differently depending on the type of PRIIPs product and the distribution model of the PRIIPs product to the retail investors, leading to the necessity of data exchange between asset managers, investment banks or wealth managers and the life insurance industry, as illustrated in the chart below for Asset Managers.

Insurance companies are demanded to publish KID documents for retail investors investing into their life insurance products. The insurer will require data input from their asset or portfolio managers and therefore a data exchange model should be implemented among the stakeholders.

Similarly to asset managers investment or private banks are impacted directly and indirectly by the PRIIPs regulation depending on the bank’s activity. Investment banks will be responsible for the production of the final KID document whereas the private will be subject to making the final KID document available to the retail investor.

Our PRIIPs KID Reporting services

Our PRIIPs KID Reporting Services consist in the following services:

  • PRIIPs Analytics Reporting & Monitoring: Risk, Performance and Costs calculations and monitoring for your Key Information Document (KID) assembly.
  • KID Factory: end-to-end solution for the assembly of your KID documents through an interactive platform. 
  • Generic KID & SID Factory: assembly of generic KID and Specific Information Documents (SIDs) for the underlying investment options of your PRIIPs multi-option products. 
  • PRIIPs Data Exchange Reporting: PRIIPs data and analytics to be disseminated to your institutional investors, in the European PRIIPs Template (EPT) or other data exchange template. 
  • EPT Data hub: Data collection, normalisation and dissemination between insurance companies and their asset / portfolio managers.

PRIIPs Reporting Workflow

European PRIIPs Information Exchange Templates

EFAMA has published the PRIIPs information exchange templates designed by insurers and asset managers.

The templates provide a functional description of the set of data to be exchanged from asset managers and banks to insurers to help them fulfil their PRIIPs regulatory obligations. They are:

  • The European PRIIPs Template (EPT) (.xls file, link opens in a new tab), which includes the minimum data necessary that asset managers will deliver free of charge to insurers for them to produce a key information document according to the provisions of the PRIIPs Regulation.
  • The “Comfort” EPT (.xls file, link opens in a new tab), which includes more data, so its delivery is subject to bilateral agreements between insurers and asset managers.

The use of the templates is not compulsory. They are free of use, intellectual property and copyright.

These templates are endorsed by EFAMA and Insurance Europe.

EFAMA is a member of the European Working Group composed of asset managers, insurers and their national associations that developed these templates.

Contacts

Xavier Zaegel, FRM

Xavier Zaegel, FRM

Partner | Capital Markets/Financial Risk Leader

Xavier is a partner within the advisory and consulting department and is the head of the Capital Markets practice in Luxembourg. As a market and credit risk specialist, he has been leading various ass... More

François-Kim Hugé

François-Kim Hugé

Partner | Fund Registration Services

François-Kim is a partner within the advisory & consulting department. He is currently in charge for running the Fund Registration Services, incl. the KIID Factory and AIFMD Notification Services. He ... More

Sylvain Crépin, FRM

Sylvain Crépin, FRM

Partner | Capital Markets/Financial Risk

Sylvain Crepin joined Deloitte Luxembourg in January 2012 and is Partner in the Financial Risk Management department. He is specialised in risk management advisory and solutions for the investment fun... More

Florence Buron

Florence Buron

Senior Manager | Financial Industry Solutions

Florence has more than 20 years experience in the financial sector in Belgium and Luxembourg, in the banking and life insurance sectors. Florence is Senior Manager at Deloitte Luxembourg since 1 Janua... More