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The ESAs are mandated by the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs Regulation) to develop draft Regulatory Technical Standards (RTS) on the content and presentation of the KIDs for PRIIPs.
The aim of the KIDs is to provide EU retail investors with consumer-friendly information about investment products with the ultimate aim of improving transparency in the investment market. The ESAs issued a first Discussion Paper in November 2014 (JC/DP/2014/02) seeking stakeholders' general views on how these standardised KIDs should be developed.
The Technical Discussion Paper published today aims to collect views on the possible methodologies to determine and display risks, performance and costs in the KID. The paper is split into a section on risk and reward and a section on costs. A number of different methodological options are identified for each element of disclosure.
The discussion paper is available on the websites of the three ESAs: EBA, ESMA and EIOPA. Comments on this discussion paper can be sent via the ‘Consultations' section of the ESMA website.