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United Kingdom
United Kingdom
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Packaged retail and insurance-based investment product (PRIIP) meaning
Published by a LexisNexis Financial Services expert
What does Packaged retail and insurance-based investment product (PRIIP) mean?
In practice, a PRIIP is a retail-facing packaged investment or insurance product where the amount repayable to the retail client depends on the performance of underlying assets or reference values. It typically includes AIFs marketed to retail, structured notes, structured deposits and unit‑linked life insurance. The term is defined in legislation: Regulation (EU) 1286/2014 (the PRIIPs Regulation) and, in the UK, the onshored UK PRIIPs Regulation.
A core feature is the pre‑contractual Key Information document (KID). Manufacturers must produce a standardised KID and distributors must provide it to retail investors before sale.
Ireland (EU): the EU PRIIPs Regulation applies. From 1 January 2023, UCITS are in scope and UCITS managers must provide a PRIIPs KID to retail investors instead of a UCITS KIID.
United Kingdom: the onshored regime applies. UCITS remain exempt from the UK PRIIPs KID requirement until 31 December 2026 and must continue to provide a UCITS KIID to UK retail investors. AIFs and other PRIIPs offered to UK retail require a UK PRIIPs KID prepared in line with FCA rules.
Non‑compliance with KID obligations can result in regulatory action and civil liability for a misleading, inaccurate or inconsistent KID. Usage is otherwise consistent across the UK and Ireland.
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View the related Practice Notes about Packaged retail and insurance-based investment product (PRIIP)
PRACTICE NOTES
From PRIIPs to CCIs: UK retail investor disclosure under the FCA’s CCI regime and the Consumer Composite Investments (Designated Activities) Regulations 2024—scope, transition and final rules
The UK PRIIPs Regulation, UK implementation and Brexit The purpose of this Practice Note is to set out an overview of the UK Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation (Assimilated Regulation (EU) 1286/2014), which is being superseded by a UK retail investor disclosure regime for Consumer Composite Investments (CCIs). Central to the PRIIPs framework is the obligation on product manufacturers to prepare a standardised, pre-investment Key Information Document (KID) for each PRIIP, enabling retail investors to compare products and decide whether a PRIIP suits their needs. The approach is not novel, drawing largely from the undertakings for collective investment in transferable securities (UCITS) Key Investor Information Document (KIID). For further detail on the EU PRIIPs Regulation and associated level 2 measures—covering scope, principal requirements, and the prescribed form and content of the KID—see Practice Note: EU Packaged Retail and Insurance-based Investment Products (PRIIPs) and the EU Retail Investment Strategy—essentials—The EU Retail Investment Strategy. The UK PRIIPs Regulation (Assimilated Regulation (EU) 1286/2014) remains in force in the UK...
21 May
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PRACTICE NOTES
EU PRIIPs regime: scope, KID content and delivery, Level 2 RTS, product intervention, liability and sanctions, and Retail Investment Strategy reforms
The PRIIPs Regulation and level 2 measures This Practice Note sets out an overview of the Packaged Retail and Insurance-based Investment Products (PRIIPs) regime in Regulation (EU) 1286/2014 and the related Level 2 measures. A key element is the duty on product manufacturers to prepare a standard, pre-sale Key Information Document (KID) for PRIIPs, allowing retail investors to compare products and decide whether a PRIIP is suitable for them. The approach draws heavily on the undertakings for collective investment in transferable securities (UCITS) Key Investor Information Document (KIID). Regulation (EU) 1286/2014 was published in the Official Journal of the European Union on 9 December 2014 and has applied since 1 January 2018, with a UCITS exemption running until 31 December 2022. This carve-out also covers non-UCITS retail funds that produce a UCITS KIID (Article 32(2) of Regulation (EU) 1286/2014). The extended exemption—which was initially due to end on 31 December 2021—is addressed in Article 32(1) of the PRIIPs Regulation, as amended by Article 1 of Regulation (EU) 2021/2259....
21 May
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