Packaged retail and insurance-based investment product (PRIIP) regulation requires, from 1 January 2018, product manufacturers to create, maintain and distribute key information documents (KIDs) in plain language for retail investors living in the European Economic Area (EEA) to easily understand and compare products.
According to the regulation, PRIIP means an investment where, regardless of the legal form of the investment, the amount repayable to the retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets which are not directly purchased by the retail investor.
KIDs for PRIIPs are part of a drive by the European Union (EU) to increase transparency and efficiency in the retail investment market. The EU wants to help consumers (non-professionals) better understand the investments they are buying, and make the retail investment market easier for consumers to navigate as a result.
The KID is a three-page document outlining the investment’s risks and costs. Acting as a quick reference guide to the PRIIP, KIDs follow strict design and content guidelines. They are produced in at least one official language of each country where the product is marketed, and are regularly reviewed and updated.
The content of the KID is defined by EU legislations and includes:
The future performance of an investment cannot be deduced from a previous market value, which means that the value of an investment can rise or fall. Good performance in the past is no guarantee of future good performance. SMBC Group gives no undertaking or guarantee of performance in respect of any specific investment.
Auf Deutsch (in German)
Please contact your relationship manager for customised KIDs with different currency pairs, languages, tenors or expiration days.