In less than a year, all UCITS funds that were previously exempt from the regulation must also have implemented their mandatory documentation in accordance with the regulations of the PRIIPs Regulation. This means a major change for all players.
The aim of the European regulation is to improve the technical regulatory standard for all PRIIP information sheets (Packaged Retail and Insurance-based Investment Products). This is primarily intended to achieve greater investor protection through more transparency with regard to the costs and risks of the investment and better comparability of the products.
The diverse requirements to which all PRIIP documents will be subject from the cut-off date of 01.01.2022 concern content, availability and up-to-dateness. For all providers of funds - irrespective of the number of securities offered - there will thus be some changes. The decisive competitive factor will be who is optimally positioned by the deadline, i.e. who has best adapted its systems to the requirements of the new regulations.
The various requirements of content, "logistical" and technical nature are very multi-layered and complex and thus represent an enormous challenge for those responsible.
The changes in content (content challenges), which are aimed at a MiFID-compliant harmonisation, primarily concern higher requirements for data quality; future scenarios instead of past observations require new calculation methods for all PRIIP key figures and thus comprehensive mathematical expertise. In addition, there is a necessary expansion of the current KIID from two to three pages with 9 instead of 7 categories in the future. In addition, availability in the respective language of the investor must be guaranteed.
The "logistical" requirements (dissemination challenges) demand a fast and simple ad-hoc PRIIP document provision and availability at any time. In addition, the PRIIP KID must be accessible to the investor before the contract is concluded.
In order to be able to guarantee that the PRIIP KID is up-to-date, the maintenance challenges require a regular update and a corresponding regeneration in the event of sufficiently significant data changes.
The requirements of the upcoming PRIIP regulation demand an automated, powerful and reliable system for the efficient organisation of all work processes, regardless of the volume of securities traded. Relieving the burden on staff - and thus time and cost efficiency - are the most important success factors here.
Content Software's many years of experience in the development of professional software technology and services around the topic of "financial documentation" guarantees you the best support in your preparations for the upcoming PRIIP regulation. Secure your lasting competitive advantage with a flexible, secure and performance- and cost-efficient system.
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