PRIIPs Regulation
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Retail investor protection - UK - Financial Conduct Authority - European Union.
Abbreviation for the Packaged Retail and Insurance-based Investment Products Regulation that has applied in the UK since 1 January 2018.
The aim of the PRIIPs Regulation is to help investors to better understand and compare the key features, risk, rewards and costs of different PRIIPs, through access to a Key Information Document (KID).
- FCA consultation on PRIIPs Regulation
- "For many corporate bond issuers, it is not clear whether they fall within the scope of the PRIIPs Regulation.
- Evidence collected by the FCA identified a particular problem in relation to debt securities which are not necessarily complex but include commonly used features such as issuer calls (make whole) and change of control puts.
- Arguably, these features trigger the PRIIPs regulations and therefore issuers either produce a KID or, more commonly, make the offering ineligible to retail investors.
- Neither of these solutions is particularly attractive and, as part of [its] consultation, the FCA are looking to clarify definitions."
- Association of Corporate Treasurers - September 2021 Membership newsletter
