UCITS KIID PRIIPs KID Transition. Is that Ever Going to Happen?
There are few reasons why UCITS managers are concerned with PRIIPs. The first and most apparent one is that the definition of PRIIPs encompasses both packaged retail investment products and insurance-based investment products, with UCITS falling under the first category. The second reason, more political in nature, is linked to the future evolution of the PRIIPs regulation and the grandfathering provisions for UCITS.
For the UCITS directive already imposing a requirement to produce a Key Investor Information Document (UCITS KIID), very similar in nature to a PRIIPs KID, UCITS have been so far grandfathered from the requirement to produce a PRIIPs KID. The so-called transitional period, supposed to last until the end of December 2019, has since been extended until the end of December 2021. Given the complexity of the issues raised by the PRIIPs regulation and the status of its review, it does not seem so unlikely at this point that an additional extension to the transitional period might be granted.