Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents (Text with EEA relevance)Text with EEA relevance

• Published date: 28 November 2019
• Subject Matter: libre circulation des capitaux,Liberté d'établissement,libera circolazione dei capitali,Libertà di stabilimento,libre circulación de capitales,Libertad de establecimiento
• Official Gazette Publication: Journal officiel de l'Union européenne, L 100, 12 avril 2017,Gazzetta ufficiale dell'Unione europea, L 100, 12 aprile 2017,Diario Oficial de la Unión Europea, L 100, 12 de abril de 2017

02017R0653 — EN — 19.10.2022 — 005.001

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►B COMMISSION DELEGATED REGULATION (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents (Text with EEA relevance) (OJ L 100 12.4.2017, p. 1)

Amended by:

		Official Journal
		No	page	date
M1	COMMISSION DELEGATED REGULATION (EU) 2018/977 of 4 April 2018	L 176	1	12.7.2018
M2	COMMISSION DELEGATED REGULATION (EU) 2019/1866 of 3 July 2019	L 289	4	8.11.2019
M3	COMMISSION DELEGATED REGULATION (EU) 2021/2268 of 6 September 2021	L 455I	1	20.12.2021
►M4	COMMISSION DELEGATED REGULATION (EU) 2022/975 of 17 March 2022	L 167	35	24.6.2022
M5	COMMISSION DELEGATED REGULATION (EU) 2022/1666 of 13 June 2022	L 251	3	29.9.2022

Corrected by:

►C1	Corrigendum, OJ L 120, 11.5.2017, p. 31 (2017/653)
C2	Corrigendum, OJ L 210, 15.8.2017, p. 16 (2017/653)
C3	Corrigendum, OJ L 115, 13.4.2022, p. 187 (2021/2268)

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▼B

COMMISSION DELEGATED REGULATION (EU) 2017/653

of 8 March 2017

supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents

(Text with EEA relevance)

CHAPTER I

CONTENT AND PRESENTATION OF THE KEY INFORMATION DOCUMENT

Article 1

General information section

The section in the key information document that relates to the identity of the PRIIP manufacturer and its competent authority shall contain all of the following information:

(a)

the name of the PRIIP assigned by the PRIIP manufacturer and, where present, the PRIIP's International Securities Identification Number or Unique Product Identifier;

(b)

the legal name of the PRIIP manufacturer;

(c)

the PRIIP manufacturer's specific website address providing retail investors with information on how to get in contact with the PRIIP manufacturer, and a telephone number;

(d)

the name of the competent authority responsible for the supervision of the PRIIP manufacturer in relation to the key information document;

(e)

the date of production or, where the key information document has been subsequently revised, the date of the latest revision of the key information document.

Information in the section referred to in the first subparagraph shall also include the comprehension alert referred to in Article 8(3)(b) of Regulation (EU) No 1286/2014 where the PRIIP meets one of the following conditions:

(a)

it is an insurance-based investment product which does not meet the requirements laid down in Article 30(3)(a) of Directive (EU) 2016/97 of the European Parliament and of the Council ( 1 );

(b)

it is a PRIIP which does not meet the requirements laid down in points (i)-(vi) of Article 25(4)(a) of Directive 2014/65/EU of the European Parliament and of the Council. ( 2 )

Article 2

‘What is this product?’ section

1.

Information relating to the type of the PRIIP in the section entitled ‘What is this product?’ of the key information document shall describe its legal form.

2.

Information stating the objectives of the PRIIP and the means for achieving those objectives in the section entitled ‘What is this product?’ of the key information document shall be summarised in a brief, clear and easily understandable manner. That information shall identify the main factors upon which return depends, the underlying investment assets or reference values, and how the return is determined, as well as the relationship between the PRIIP's return and that of the underlying investment assets or reference values. That information shall reflect the relationship between the recommended holding period and the risk and reward profile of the PRIIP.

Where the number of assets or reference values referred to in the first subparagraph is such that specific references to all of them cannot be provided within a key information document, only the market segments or instrument types in respect of the underlying investment assets or reference values shall be identified.

3.

The description of the type of retail investor to whom the PRIIP is intended to be marketed in the section entitled ‘What is this product?’ of the key information document shall include information on the target retail investors identified by the PRIIP manufacturer, in particular depending on the needs, characteristics and objectives of the type of client for whom the PRIIPs is compatible. This determination shall be based upon the ability of retail investors to bear investment loss and their investment horizon preferences, their theoretical knowledge of, and past experience with PRIIPs, the financial markets as well as the needs, characteristics and objectives of potential end clients.

4.

The details of insurance benefits in the section entitled ‘What is this product?’ of the key information document shall include in a general summary, namely, the key features of the insurance contract, a definition of each benefit included, with an explanatory statement indicating that the value of those benefits is shown in the section entitled ‘What are the risks and what I could get in return’ and information which reflects the typical biometric characteristics of the target retail investors, showing the overall premium, the biometric risk premium that forms part of that overall premium and either the impact of the biometric risk premium on the investment return at the end of the recommended holding period or the impact of the cost part of the biometric risk premium taken into account in the recurring costs of the ‘Costs over the time table’ calculated in accordance with Annex VII. Where the premium is paid in the form of a single lump sum, the details shall include the amount invested. Where the premium is paid periodically, the number of periodic payments, an estimation of the average biometric risk premium as a percentage of the annual premium, and an estimation of the average amount invested shall be included in the information.

The details referred to in the first subparagraph shall also include an explanation of the impact of the insurance premium payments, equivalent to the estimated value of insurance benefits, on the returns of the investment for the retail investor.

5.

The information relating to the term of the PRIIP in the section entitled ‘What is this product?’ of the key information document shall include all of the following:

(a)

the maturity date of the PRIIP or an indication that there is no maturity date;

(b)

an indication of whether the PRIIP manufacturer is entitled to terminate the PRIIP unilaterally;

(c)

a description of the circumstances under which the PRIIP can be automatically terminated, and the termination dates, if known.

Article 3

‘What are the risks and what could I get in return?’ section

1.

In the section entitled ‘What are the risks and what could I get in return?’ of the key information document, PRIIP manufacturers shall apply the methodology for the presentation of risk as set out in Annex II, include the technical aspects for the presentation of the summary risk indicator as set out in Annex III and comply with the technical guidance, the formats and the methodology for the presentation of performance scenarios, as set out in Annexes IV and V.

2.

In the section entitled ‘What are the risks and what could I get in return?’ of the key information document, PRIIP manufacturers shall include the following:

(a)

the level of risk of the PRIIP in the form of a risk class by using a summary risk indicator having a numerical scale from 1 to 7;

(b)

an explicit reference to any illiquid PRIIP or PRIIP with materially relevant liquidity risk, as defined in Part 4 of Annex II, in the form of a warning to this effect in the presentation of the summary risk indicator;

(c)

a narrative below the summary risk indicator explaining that if a PRIIP is denominated in a currency other than the official currency of the Member State where the PRIIP is being marketed, the return, when expressed in the official currency of the Member State where the PRIIP is being marketed, may change depending on currency fluctuations;

(d)

a brief description of the PRIIP's risk and reward profile and a warning to the effect that the risk of the PRIIP may be significantly higher than the one represented in the summary risk indicator where the PRIIP is not held to maturity or for the recommended holding period, where appropriate;

(e)

for PRIIPs with contractually agreed-upon early exit penalties or long disinvestment notice periods, a reference to the relevant underlying conditions in the section ‘How long should I hold it and can I take money out...