The purpose of the PRIIPs regulation is to make it easier for retail investors in the European Economic Area ('EEA') to compare PRIIPs products and make a more informed investment decision through the use of a three page standardised pre-contractual disclosure document, called a Key Information Document ('KID'). The format of the KID is very prescriptive and contains amongst other things, a description of the product, its key risks (including a summary risk indicator) its potential returns, illustrated with appropriate performance scenarios, together with details of both direct and indirect costs and the recommended holding period. The KID is required to be made available to retail investors in good time, prior to them making their investment decision. The PRIIPs regulation is effective from 1st January 2018.
The Regulation states that a person who advises a retail investor on a PRIIP product or sells a PRIIP product, to a retail investor must provide the retail investor with a KID. In addition, the distributor of the product also has an obligation to provide copies of previously issued KID versions, if so requested by the retail investor.
The purpose of this PRIIPs Web Portal is to provide our retail clients with a means by which they can view Key Information Documents relating to PRIIPs manufactured and distributed by the bank. Through this portal retail investors will have instant access to the most recent KID and any subsequent revisions, thereby enabling them to read the KIDs in a timely fashion, giving them sufficient time to consider their investment decision.
This provides you with the name and contact details of the KID manufacturer and details of the organisation's regulator along with the product name.
The section entitled 'What is this product?' provides detail of the product including the product's objectives, how these will be achieved, the intended target market and various other product details.
The Risk Indictor ranks the risk of the product from 1 to 7 with 7 being the highest. Please note:
This provides you with an indication of how much money you could get back (after costs) on the settlement date using 4 different performance scenarios – favourable, moderate, unfavourable and stress (extreme market conditions).
The various scenarios have been calculated in accordance with the guidance contained in the PRIIPs regulation. It should be noted that the calculation methodology is based on the PRIIP being a stand-alone product and does not take into account the underlying position being hedged.
If you would like a more detailed explanation of the scenario analysis results shown in the table you should contact your usual SGCB contact.
This provides you with estimates of total costs associated with this product.
The section headed 'Impact on return (RIY) per year' illustrates the 'reduction in yield' that is caused by the estimated costs being applied to the PRIIP. If you are charged lower costs than these estimated costs the reduction in yield will be less than in the illustration.