What is the PRIIPs KID (Key Information Document)?

The Key Information Document (KID) is a standardised, pre-contractual information document for retail investors. Art. 6(4) of the PRIIPs Regulation caps it at **a maximum of three sides of A4** when printed, to promote comparability; it must also be “accurate, fair, clear and not misleading” (Art. 6(1)) ^[1]. (An occasionally cited “two-page” figure is a loose summary — the binding value is three A4 sides.)

The legal basis is the **PRIIPs Regulation (EU) No 1286/2014**, applicable since **1 January 2018** (originally set for 2017, postponed by one year via Regulation (EU) 2016/2340 after Parliament rejected the first draft RTS) ^[1].

The detailed rules sit in the RTS: the base is **Delegated Regulation (EU) 2017/653**. It was revised by **Delegated Regulation (EU) 2021/2268** (the “new RTS”: performance scenarios, cost presentation, past performance). Mind the date: 2021/2268 originally named 1 July 2022 — the actual application **from 1 January 2023** was only set by **Delegated Regulation (EU) 2022/975** ^[2][3].

A **PRIIP** (Art. 4 of the regulation) is a packaged retail investment product and/or an insurance-based investment product (IBIP) whose repayable amount fluctuates because of reference values or assets not directly held. In scope are, among others, structured products and deposits, derivatives, open- and closed-ended investment funds, and **unit-linked and with-profits life insurance** ^[1].

Two roles must be separated: the **PRIIP manufacturer** draws up the KID and publishes it on its website before distribution (Art. 5(1)). The **adviser or seller** hands it to the retail investor in good time before they are bound by a contract (Art. 13(1)) ^[1]. Since 1 January 2023 the former UCITS exemption has also ended — UCITS funds for retail investors now need a PRIIPs KID instead of the UCITS KIID ^[3].

The KID follows a prescribed template (Annex I of the 2017/653 RTS) with fixed sections: “What is this product?”, “What are the risks and what could I get in return?” (with the Summary Risk Indicator and the performance scenarios), “What are the costs?”, “How long should I hold it and can I take money out early?”, plus “What happens if [the manufacturer] is unable to pay out?” and “How can I complain?” ^[2].

The **Summary Risk Indicator (SRI)** is a numerical scale from **1 to 7** (Art. 3(2) of the 2017/653 RTS; 1 = lowest, 7 = highest risk) that combines market and credit risk ^[2].

The KID must be **kept current**: Art. 15 of the 2017/653 RTS requires a review on any change that significantly affects (or may affect) the information, and **at least every twelve months**; a revised version must be made available without undue delay ^[2].

From the ESA supervisory statements, recurring weaknesses: **performance scenarios** (the pre-2023 methodology was seen as too optimistic — exactly what 2021/2268 overhauled), **cost disclosure** (inconsistent cost tables, poor comparability), and the largely free-text **“What is this product?”** section, which is often too technical and unclear ^[4].