Simmons FAQ on where things stand on the PRIIPs KID for UCITS

Over the past few months, there have been a number of developments regarding PRIIPs, both in the EU and in the UK.

As far as the EU's PRIIPs Regulation is concerned:

• New legislation published in December 2021 has;
  • made changes to the PRIIPs Level 2 RTS on the content and presentation of the KID;
  • put back the date on which the UCITS exemption ends to 31 December 2022; and
  • required Member States to ensure that, from 1 January 2023, where a UCITS provides an investor with a PRIIPs KID, it is deemed to have complied with its obligation to provide a KIID under the UCITS Directive.
• The European Commission has formally proposed delaying the application of the amended PRIIPs Level 2 RTS until 1 January 2023 – a move which is not expected to be contested by the European Parliament or the Council of the EU
• The European Commission is starting to roll out its delayed review of the PRIIPs Regulation into a wider look at disclosure and distribution to retail investors under the new Capital Markets Union action plan.

Meanwhile, in the UK,

• HM Treasury’s Regulations have now come into effect and extend the UCITS exemption in the UK to 31 December 2026.
• The FCA has published a statement on the UK UCITS extension, noting that it
  • will be making consequential amendments to the UK PRIIPs RTS and Handbook guidance to reflect the new end date of the UCITS exemption; and
  • will not take enforcement action against firms for breach of the PRIIPs RTS if they provide a UK UCITS KIID or a NURS-KII document in accordance with Article 14(2) of those RTS.
• The FCA has now published PS 22/2, containing its final rules for the UK PRIIPs regime – these came into effect on 25 March 2022 but are subject to an implementation period which lasts to 31 December 2022, thereby aligning the introduction of the rules with those in the EU. See here for our summary of PS22/2.

As a result, we have updated our client note, ‘PRIIPs KIDs for UCITS. An FAQ on where things stand now’, to take you through these developments and the impact they will have as well as setting out how we can help you prepare and stay fully informed.