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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) (revoked)

EU Regulation 2017/653 · Adopted 8 March 2017 · Extends to United Kingdom

Original text. legislation.gov.uk does not revise this item, so later amendments are not shown here. Changes made to it are listed under each provision when known.

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) (revoked)

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations to the whole text

Textual amendments

F1

Regulation revoked (6.4.2026) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pts. 1, 3 (with s. 1(4)); S.I. 2025/1078, reg. 7(d)(ii)

Contents

  1. Chapter I: CONTENT AND PRESENTATION OF THE KEY INFORMATION DOCUMENT Repealed
  2. 1General information section Repealed
  3. 2‘What is this product?’ section Repealed
  4. 3‘What are the risks and what could I get in return?’ section Repealed
  5. 4‘What happens if [the name of the PRIIP manufacturer] is unable to pay out?’ section Repealed
  6. 5‘What are the costs?’ section Repealed
  7. 6‘How long should I hold it and can I take my money out early?’ section Repealed
  8. 7‘How can I complain?’ section Repealed
  9. 8‘Other relevant information’ section Repealed
  10. 9Template Repealed
  11. Chapter II: SPECIFIC PROVISIONS ON THE KEY INFORMATION DOCUMENT Repealed
  12. 10PRIIPs offering a range of options for investment Repealed
  13. 11‘What is this product’ section in the generic key information document Repealed
  14. 12‘What are the risks and what could I get in return?’ section in the generic key information document Repealed
  15. 13‘What are the costs?’ section in the generic key information document Repealed
  16. 14Specific information on each underlying investment option Repealed
  17. Chapter III: REVIEW AND REVISION OF THE KEY INFORMATION DOCUMENT Repealed
  18. 15Review Repealed
  19. 16Revision Repealed
  20. Chapter IV: DELIVERY OF THE KEY INFORMATION DOCUMENT Repealed
  21. 17Conditions on good time Repealed
  22. 18Final Provision Repealed
  23. Signature
  24. Annex ITEMPLATE FOR THE KEY INFORMATION DOCUMENT Repealed
  25. Annex II: METHODOLOGY FOR THE PRESENTATION OF RISK Repealed
  26. Market risk assessment Repealed
  27. Determination of the market risk measure (MRM) Repealed
  28. 1Division 1 Repealed
  29. 2The PRIIP shall be assigned a MRM class according to the following table: Repealed
  30. Specification of PRIIP categories for the purposes of the market risk assessment Repealed
  31. 3Division 3 Repealed
  32. 4Category 1 covers the following: Repealed
  33. 5Division 5 Repealed
  34. 6Division 6 Repealed
  35. 7Division 7 Repealed
  36. Use of appropriate benchmarks or proxies to specify PRIIPs categories Repealed
  37. MRM class determination for Category 1 PRIIPs Repealed
  38. 8Division 8 Repealed
  39. MRM class determination for Category 2 PRIIPs Repealed
  40. 9Division 9 Repealed
  41. 10Division 10 Repealed
  42. 11Division 11 Repealed
  43. 12The VaR measure in return space is given by the Cornish-Fisher expansion, as follows: Repealed
  44. 13The VEV is given by: Repealed
  45. 14For PRIIPs that are managed according to investment policies or strategies that pursue certain reward objectives by participating through flexible investment in different financial asset classes (e.g. in both equity and fixed-income markets), the VEV that shall be used shall be determined as follows: Repealed
  46. 15Division 15 Repealed
  47. MRM class determination for Category 3 PRIIPs Repealed
  48. 16Division 16 Repealed
  49. 17The VEV is given by: Repealed
  50. 18Division 18 Repealed
  51. 19Division 19 Repealed
  52. 20Division 20 Repealed
  53. 21Division 21 Repealed
  54. 22For each simulation of a spot price (or level), the PRIIP manufacturer shall: Repealed
  55. 23For curves, a principal component analysis (PCA) shall be performed to ensure that the simulation of the movements of each point on the curve over a long period results in a consistent curve. Repealed
  56. 24Division 24 Repealed
  57. MRM class determination for Category 4 PRIIPs Repealed
  58. 25Division 25 Repealed
  59. 26Division 26 Repealed
  60. 27Division 27 Repealed
  61. 28Division 28 Repealed
  62. 29Division 29 Repealed
  63. Methodology for assessing credit risk Repealed
  64. GENERAL REQUIREMENTS Repealed
  65. 30Division 30 Repealed
  66. 31Division 31 Repealed
  67. 32Division 32 Repealed
  68. 33Division 33 Repealed
  69. 34Division 34 Repealed
  70. 35Division 35 Repealed
  71. 36Division 36 Repealed
  72. CREDIT RISK ASSESSMENT Repealed
  73. Credit assessment of obligors Repealed
  74. 37Division 37 Repealed
  75. 38The level of credit risk of the PRIIP and each relevant obligor shall be assessed on the basis of, as applicable: Repealed
  76. Allocation of credit assessments to credit quality steps Repealed
  77. 39Division 39 Repealed
  78. 40Division 40 Repealed
  79. 41Division 41 Repealed
  80. 42The credit quality step pursuant to point 38 of this Annex shall be adjusted to the maturity or recommended holding period of the PRIIP, according to the following table, except where a credit assessment has been assigned that reflects that maturity or recommended holding period): Repealed
  81. 43If the obligor has no external credit assessments, the default credit assessment as referred to in point 38 of this Annex shall be: Repealed
  82. CREDIT RISK MEASURE Repealed
  83. 44Division 44 Repealed
  84. 45Table on the mapping of credit quality steps into a CRM: Repealed
  85. 46The CRM may be assigned as 1 where the assets of a PRIIP or appropriate collateral, or assets backing the payment obligation of the PRIIP, are: Repealed
  86. 47The CRM may be assigned as 2 where the assets of a PRIIP or appropriate collateral, or assets backing the payment obligation of the PRIIP, are: Repealed
  87. 48Division 48 Repealed
  88. 49Division 49 Repealed
  89. 50Division 50 Repealed
  90. 51Division 51 Repealed
  91. Aggregation of market and credit risk into the summary risk indicator Repealed
  92. 52The overall summary risk indicator (SRI) is assigned according to the combination of the CRM and the MRM classes, in accordance with the following table: Repealed
  93. Monitoring data with relevance for the summary risk indicator Repealed
  94. 53Division 53 Repealed
  95. 54Division 54 Repealed
  96. 55Division 55 Repealed
  97. Liquidity risk Repealed
  98. 56A PRIIP shall be considered as having a materially relevant liquidity risk where either of the following criteria are fulfilled: Repealed
  99. 57A PRIIP shall be considered illiquid, whether contractually or not, if either of the following criteria are fulfilled: Repealed
  100. 58Division 58 Repealed
  101. Annex III: PRESENTATION OF SRI Repealed
  102. Presentation format Repealed
  103. 1PRIIP manufacturers shall use the format below for the presentation of the SRI in the key information document. The relevant number shall be highlighted as shown depending on the SRI for the PRIIP. Repealed
  104. Completion guidance with regard to the SRI Repealed
  105. 2Division 2 Repealed
  106. 3Immediately below the SRI, the time frame of the recommended holding period shall be indicated. In addition, a warning shall be included directly below the SRI in the following cases: Repealed
  107. 4As applicable for each PRIIP, the narrative explanation shall include: Repealed
  108. 5Division 5 Repealed
  109. 6Division 6 Repealed
  110. Narrative explanations Repealed
  111. 7For the purposes of the SRI presentation, including point 4 of this Annex, the following narrative explanations shall be used, as appropriate: Repealed
  112. Annex IV: PERFORMANCE SCENARIOS Repealed
  113. Number of scenarios Repealed
  114. 1The four performance scenarios under this Regulation which shall show a range of possible returns, shall be the following: Repealed
  115. 2Division 2 Repealed
  116. 3Division 3 Repealed
  117. Calculation of scenario values for the recommended holding period Repealed
  118. 4Division 4 Repealed
  119. 5Division 5 Repealed
  120. 6Division 6 Repealed
  121. 7Division 7 Repealed
  122. 8Division 8 Repealed
  123. 9For Category 2 PRIIPs, the expected values at the end of the recommended holding period shall be: Repealed
  124. 10For Category 2 PRIIPs, the calculation of the stress scenario has the following steps: Repealed
  125. 11For Category 2 PRIIPs, the expected values at the end of the recommended holding period for the stress scenario shall be: Repealed
  126. 12For Category 3 PRIIPs, the following adjustments shall be made to the calculation of favourable, moderate and unfavourable performance scenarios: Repealed
  127. 13For Category 3 PRIIPs, the following adjustments shall be made for the calculation of the stress scenario: Repealed
  128. 14Division 14 Repealed
  129. 15Division 15 Repealed
  130. 16Division 16 Repealed
  131. 17Division 17 Repealed
  132. 18For Category 1 PRIIPs as defined in point 4(c) of Annex II a reasonable and conservative best estimate of the expected values for the performance scenarios set out in point 1(a) to (c) of this Annex at the end of the recommended holding period shall be provided. Repealed
  133. Calculation of expected values for intermediate holding periods Repealed
  134. 19Division 19 Repealed
  135. 20Division 20 Repealed
  136. 21Division 21 Repealed
  137. 22Division 22 Repealed
  138. 23Division 23 Repealed
  139. 24For Category 3 PRIIPs, to produce the favourable, moderate, unfavourable and stress scenarios at an intermediate period before the end of the recommended holding period, the manufacturer shall pick three underlying simulations as referred to in points 16 to 24 of Annex II used for the calculation of the MRM and one underlying simulation as referred to in point 13 of this Annex, on the basis of underlying levels only and in such a manner that the simulated value of the PRIIPs for that intermediate period is likely to be consistent with the relevant scenario. Repealed
  140. 25Division 25 Repealed
  141. 26Division 26 Repealed
  142. 27Division 27 Repealed
  143. 28Division 28 Repealed
  144. 29Division 29 Repealed
  145. 30Division 30 Repealed
  146. General requirements Repealed
  147. 31Division 31 Repealed
  148. 32Division 32 Repealed
  149. 33Performance shall also be presented in percentage terms, as the average annual return of the investment. That figure shall be calculated considering net performance as numerator and the initial investment amount or the price paid as denominator. Repealed
  150. 34For an insurance based investment product, the following shall apply in addition to the methods referred above including under point 15 when calculating the performance scenarios in respect of the investment: Repealed
  151. Annex V: METHODOLOGY FOR THE PRESENTATION OF PERFORMANCE SCENARIOS Repealed
  152. General presentation specifications Repealed
  153. 1Division 1 Repealed
  154. 2Division 2 Repealed
  155. 3Division 3 Repealed
  156. PART 2Presentation of performance scenarios Repealed
  157. Annex VI: METHODOLOGY FOR THE CALCULATION OF COSTS Repealed
  158. List of costs Repealed
  159. LIST OF COSTS OF INVESTMENTS FUNDS (AIFs AND UCITS) Repealed
  160. Costs to be disclosed Repealed
  161. One-off costs Repealed
  162. 1A one-off cost is an entry or exit cost which is either: Repealed
  163. 2Division 2 Repealed
  164. 3One-off costs include, but are not limited to, the following types of up-front initial costs that shall be taken into account in the cost amount to be disclosed in the key information document: Repealed
  165. Recurring Costs Repealed
  166. 4Recurring costs are payments deducted from the assets of an AIF or UCITS, and represent the following: Repealed
  167. 5Recurring costs include, but are not limited to, the following types of costs that are deducted from the assets of the AIF or UCITS, and shall be taken into account in the cost amount to be disclosed in the key information document: Repealed
  168. Incidental costs Repealed
  169. 6The following types of incidental costs shall be taken into account in the amount to be disclosed: Repealed
  170. Calculation of specific types of costs of investments funds Repealed
  171. Transaction costs Repealed
  172. 7Division 7 Repealed
  173. 8Division 8 Repealed
  174. 9When calculating the transaction costs incurred by the PRIIP over the previous three years, actual transaction costs must be calculated using the methodology described in points 12 to 18 of this Annex for investments in the following instruments: Repealed
  175. 10Division 10 Repealed
  176. Treatment of anti-dilution mechanisms Repealed
  177. 11Where a PRIIP has a pricing mechanism that offsets the impact of dilution from transactions in the PRIIP itself, the amount of benefit accruing to the ongoing holders of the PRIIP from anti-dilution mechanisms may be deducted from the transaction costs incurred within the PRIIP using the following methodology: Repealed
  178. Actual transaction costs Repealed
  179. 12The actual transaction costs for each transaction shall be calculated on the following basis: Repealed
  180. 13Division 13 Repealed
  181. 14Division 14 Repealed
  182. 15Division 15 Repealed
  183. 16Costs associated with transactions undertaken by PRIIPs and concerning financial instruments that fall within one of the categories referred to in items 4 to 10 of Section C of Annex I to Directive 2014/65/EU shall be calculated in the following way: Repealed
  184. 17Division 17 Repealed
  185. 18Division 18 Repealed
  186. Transaction costs for other assets Repealed
  187. 19When estimating transaction costs for assets other than assets as referred to in point 9 of this Annex, the methodology in point 12 of this Annex shall be used and the arrival price shall be calculated as follows: Repealed
  188. 20Division 20 Repealed
  189. Transaction costs for new PRIIPs Repealed
  190. 21For PRIIPs that have been operating for less than 3 years and that invest predominantly in assets as referred to in point 9 of this Annex, transaction costs may be calculated either by multiplying an estimate of portfolio turnover in each asset class with the costs calculated according to the methodology referred to in point (c), or as an average of the actual transaction costs incurred during the period of operation and a standardised estimate on the following basis: Repealed
  191. 22Division 22 Repealed
  192. 23Division 23 Repealed
  193. Performance related fees Repealed
  194. 24To calculate performance related fees, the following steps shall be taken: Repealed
  195. Carried interests Repealed
  196. 25To calculate carried interests, the following steps shall be taken: Repealed
  197. 26Division 26 Repealed
  198. LIST OF COSTS OF PRIPS OTHER THAN INVESTMENT FUNDS Repealed
  199. Costs to be disclosed Repealed
  200. One-off costs Repealed
  201. 27Division 27 Repealed
  202. 28Division 28 Repealed
  203. One-off entry costs and charges Repealed
  204. 29One-off entry costs and charges include, but are not limited to, the following types that shall be taken into account in the cost amount to be disclosed for PRIPs other than investment funds: Repealed
  205. One-off exit costs and charges Repealed
  206. 30One-off exit costs and charges include, but are not limited to, the following types that shall be taken into account in the amount to be disclosed for PRIPs other than investment funds: Repealed
  207. Recurring Costs Repealed
  208. 31Division 31 Repealed
  209. 32Division 32 Repealed
  210. 33The following list is indicative but not exhaustive of the types of recurring charge that, where they are deducted or charged separately, shall be taken into account in the amount to be disclosed: Repealed
  211. Costs of PRIPs referred to in point 17 of Annex IV Repealed
  212. 34Division 34 Repealed
  213. 35Division 35 Repealed
  214. Calculation of implicit costs of PRIPs other than investment funds Repealed
  215. 36Division 36 Repealed
  216. 37Division 37 Repealed
  217. 38Division 38 Repealed
  218. 39The fair value policy that governs the measurement of the fair value shall set a series of rules including in the following areas: Repealed
  219. 40The rules referred to in point 39 of this Annex shall aim at outlining a valuation process that: Repealed
  220. 41The fair value of a structured product shall be determined on the basis of: Repealed
  221. 42Division 42 Repealed
  222. 43The valuation technique referred to in point 42 of this Annex shall consider the following according to the complexity of the product: Repealed
  223. 44Division 44 Repealed
  224. 45Division 45 Repealed
  225. 46Division 46 Repealed
  226. LIST OF COSTS OF INSURANCE-BASED INVESTMENT PRODUCTS Repealed
  227. Costs to be disclosed Repealed
  228. One-off costs Repealed
  229. 47Division 47 Repealed
  230. 48Division 48 Repealed
  231. 49One-off costs include, but are not limited to, the following types of entry costs and charges that shall be taken into account in the amount to be disclosed for insurance-based investment products: Repealed
  232. Recurring costs Repealed
  233. 50Division 50 Repealed
  234. 51Division 51 Repealed
  235. 52The following list is indicative but not exhaustive of the types of recurring charge that shall be taken into account in the amount of the ‘Other ongoing costs’ in table 2 of Annex VII: Repealed
  236. 53Division 53 Repealed
  237. Cost disclosure of the biometric risk premium of insurance based investment products Repealed
  238. Costs part of biometric risk premiums Repealed
  239. 54Division 54 Repealed
  240. 55The fair value of biometric risk premiums is the expected present value, according to the interest rates referred to in point 71(a) of this Annex, of the future benefit payments from insurance coverage taking into account the following: Repealed
  241. 56Division 56 Repealed
  242. 57Division 57 Repealed
  243. 58Division 58 Repealed
  244. 59Division 59 Repealed
  245. 60Division 60 Repealed
  246. Summary cost indicators and compound effect of the costs Repealed
  247. SUMMARY COST INDICATORS Repealed
  248. 61Division 61 Repealed
  249. 62Division 62 Repealed
  250. One-off costs and one-off costs ratios Repealed
  251. 63Division 63 Repealed
  252. 64Division 64 Repealed
  253. Recurring costs, portfolio transaction costs and insurance costs/other recurring costs ratios Repealed
  254. 65Division 65 Repealed
  255. 66For the calculation of the portfolio transaction costs ratio and the insurance costs ratio the following shall apply: Repealed
  256. 67Division 67 Repealed
  257. Incidental costs and incidental costs ratios (performance fees and carried interests ratio) Repealed
  258. 68Division 68 Repealed
  259. 69Division 69 Repealed
  260. Calculation of summary cost indicator Repealed
  261. 70Division 70 Repealed
  262. 71The estimation of future benefit payments under point 70 of this Annex shall be based on the following assumptions: Repealed
  263. 72For the purpose of the calculation of the cost free scenario as referred to in point 70 of this Annex the following shall apply: Repealed
  264. Specific requirements for PRIPs other than investment funds Repealed
  265. 73Division 73 Repealed
  266. Specific requirements for insurance-based investment products Repealed
  267. 74Division 74 Repealed
  268. 75Division 75 Repealed
  269. 76For profit participation for insurance based investment products the following shall apply: Repealed
  270. Calculation of ratios Repealed
  271. Anti-double counting principle Repealed
  272. 77Division 77 Repealed
  273. Other specifications Repealed
  274. 78Division 78 Repealed
  275. 79Division 79 Repealed
  276. 80The ratios shall be based on the most recent cost calculations which the PRIIP manufacturer has determined. Without prejudice to point 77 of this Annex, the costs are assessed on an ‘all taxes included’ basis. Repealed
  277. 81Division 81 Repealed
  278. 82Division 82 Repealed
  279. 83Division 83 Repealed
  280. 84Where the costs attributable to an underlying UCITS or AIF are to be taken into account the following shall apply: Repealed
  281. Calculation methodology for new PRIIPs Repealed
  282. 85Division 85 Repealed
  283. 86Division 86 Repealed
  284. 87Division 87 Repealed
  285. 88Division 88 Repealed
  286. 89Division 89 Repealed
  287. COMPOUND EFFECT OF THE COSTS Repealed
  288. Common requirements to all types of PRIIPs Repealed
  289. 90Division 90 Repealed
  290. 91Division 91 Repealed
  291. 92Division 92 Repealed
  292. 93Division 93 Repealed
  293. 94Division 94 Repealed
  294. Annex VIIPRESENTATION OF COSTS Repealed
  295. Table 1Cost over time Repealed