The Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs) came into force on 1 January 2018.
It aims to increase the transparency and comparability of investment products through the issue of a standardised short-form disclosure document, the PRIIPs Key Information Document (KID).
The regulation is intended to make it easier for retail investors to understand and compare the key features, risk, rewards and costs of different products in scope of PRIIPs through the provision of the KID.
The KID is a free-of-charge pre-contractual, stand-alone document that is to be shared with the investor prior to the conclusion of any transaction.
The regulation applies to PRIIPs products and services purchased by an EEA Resident Retail Investor, regardless of their nationality.
The regulation is applicable worldwide, no matter where a PRIIP is purchased, as long as it is purchased by an EEA Resident Retail Investor.