On July 4, 2017, the European Commission adopted a communication containing guidelines on the application of the Regulation on key information documents (“KIDs“) for packaged retail and insurance-based products (“PRIIPS“) (Regulation 1286/2014) (PRIIPS Regulation).

The PRIIPS Regulation lays down rules on the content and format of the KID to be drawn up by PRIIP manufacturers and on the provision of the KID to retail investors and those selling or advising on the products. By smoothing out potential interpretative divergences throughout the EU, the guidelines hope to help providers and distributors of investment products, funds and investment insurance policies design their KIDS. Along with several others, the guidelines address the following issues:

1. products covered by the PRIIPS Regulation;
2. products made available to retail investors against no consideration;
3. multi-option PRIIPS;
4. insurance-based investment products with PRIIPS and non-PRIIPS as underlying investment options;
5. territorial application;
6. use of KIDs by UCITS;
7. PRIIPS only sold by intermediaries;
8. distribution of a PRIIP without a KID; and
9. a non-PRIIP product offered alongside a PRIIP.

The communication was published in the Official Journal of the EU (OJ) on July 7, 2017, as 2017/C 218/02. Firms must comply with the Regulation from January 1, 2018.