PRIIPs — Technical guide to the KID

What PRIIPs are

The KID describes packaged retail and insurance-based investment products within the PRIIPs scope. It reports risks, scenarios, costs and terms under the applicable methodology. Required documents must be checked for each product.

• Packaged investments, including funds and certificates meeting the regulatory definition
• Insurance-based investments whose value is exposed to market fluctuations
• Exemptions exist: check the product and pre-contractual documents

The Summary Risk Indicator (SRI)

SRI summarises specified risk components on a scale from 1 to 7 under the regulatory methodology. It does not capture every risk or the maximum possible loss and also depends on holding-period assumptions.

• SRI: SRI combines market and credit risk measures under the product’s applicable methodology. KID assumptions and warnings are part of its interpretation.

How to interpret the figure in the KID:

• Read the class in the individual product KID; do not infer it from the product name.
• The lowest class does not mean capital is guaranteed.
• Liquidity risk and warnings may require separate attention.
• Exiting before the recommended period can change risk and outcome.

Performance scenarios and how to read them

KID scenarios describe hypothetical outcomes under rules that vary by product category. They are not targets, personal probabilities or return promises.

• Favourable: a positive hypothetical result under the applicable method.
• Moderate: an intermediate methodological result, not your expected return.
• Unfavourable: a negative hypothetical result, not the maximum loss.
• Stress: specific adverse conditions under the method, without excluding worse outcomes.

The number and length of horizons depend on the product and recommended period. Use those actually shown in the current KID.

RIY — Reduction in Yield

Tables show costs over time and their composition under the document’s assumptions. Check which service or distribution costs are stated separately.

Cost categories:

• One-off costs: entry and exit costs, as applicable.
• Ongoing costs: management and other administrative or operating costs, plus transactions under the applicable categories.
• Incidental costs: any performance fees or carried interest.

Reading rule: compare products under consistent assumptions and periods. Also check early exit where relevant: its cost is useful information, not a distortion to ignore.

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