What is PRIIPs?
- Packaged Retail and Insurance-based Investment Products (PRIIPs) - EU regulation,
- Communication to retail investors,
- Application from 1st January 2018,
- Obligation for the manufacturer (insurer, banker,…) to pre-contractually provide a Key Information Document (KID), satisfying very strict requirements on the form and the technical content,
- Aim: to improve the comparability of products and to ensure a better understanding for non-professional investors by more transparency on risks, performance, costs and other relevant information linked to the profile of the product as well as the underlying assets.
The main difficulties linked to KIDs production are:
- Data recovery,
- Data availability and quality,
- Systematic controls (completeness, accuracy, consistency, …),
- Product’s offer analyse: rationalization, simplification, repository product/investment support, …
- Profiling approach for unit-linked offer if too much funds are proposed,
- Several teams sought :Actuarial department, Investment compliance department, Product department, Project department, Marketing, Legal, …
- Litigation risk,
- Risk of misunderstanding by clients.
What Act-unity can do for you:
Support for actuarial department:
- Controls: validation of the different steps of calculation, consistency of developments with the regulation specificities,…
- Developments: the regulation classifies the assets into 4 categories that require different calculation methods to obtain the information to inscribe in the risk section of the KID. Our help can consist in:
- Presenting in details the 4 categories methodology, to avoid you to spend lots of time to read and understand the Regulation,
- Helping you to implement your PRIIPs solution by understanding your needs and developing the calculations,
- If necessary, helping you to analyse your portfolio to lead to choices of hypothesis.
Project management help:
- If the project isn’t already started, Act-unity can help you to have a view on the project as a whole:
- A summary of the Regulatory Technical Standards (RTS) can be presented to the company and technical aspects can be explored,
- Act-unity can help you to analyse your business to determine the process.
- If the project is already started, Act-unity may constitute a reinforcement to face a punctual workload.