15.07.2021

Countdown for PRIIPs Regulation underway!

Time is running out: Start preparing now!

The EU Commission is still planning to replace the UCITS KIIDs with the PRIIP KIDs on 01.07.2022! Even though the RTS (regulatory technical standards) may not be set until September 2021, all fund providers should start the technical preparation for the conversion of their systems and processes now at the latest. The BVI also expects a preparation period of at least 12 months.

From 1 July 2022, the new basic information sheets will be mandatory for all mutual funds. By this date, all capital management companies must have converted the previous "key investor information" (UCITS-KIIDs) to the PRIIP-KIDs that will then be mandatory. There will therefore be no coexistence of UCITS KIIDs and PRIIP KIDs.

This regulation poses considerable challenges for all providers of mutual funds. This is because it is necessary to carefully implement all new requirements for the preparation of PRIIP KIDs in the remaining time until 1 July 2022. This does not only concern content-related topics (such as transaction cost valuations and performance scenarios), but also numerous new requirements for the availability, publication and timeliness of PRIIP KIDs.

Small and medium-sized fund providers should also start thinking about making their mandatory documentation more efficient and cost-effective now at the latest. For, if only because of the required regular review for up-to-dateness and compliance conformity, it is advisable to create the new PRIIP KID automatically in the future.

Even though the technical regulatory standards (RTS) for the implementation of the new requirements may not be defined by the EU Commission until September 2021, all fund providers should start adapting their systems and processes to the complex new requirements now at the latest. The BVI currently points out once again that the technical implementation of the PRIIPs information for the large number of mutual funds requires a preparation period of at least 12 months.

The next few months until the deadline of 1 July 2022 will therefore be decisive: only those who use this time to prepare their systems and processes for the technical changeover will be able to continue their business from July 2022 without any problems.

We are happy to support you in this complex changeover with a flexible and cost-effective cloud-based software solution: Our products automatically calculate and check all the required PRIIP KID key figures (CS Quant Engine) and manage the creation, administration and publication of all (mandatory) documents for your funds (CS Legal). So that you can concentrate on your business and your clients!

Get informed in good time - contact us or arrange your personal (free) demo appointment!