How FE fundinfo helps you comply with PRIIPs Regulation

Regulation for Packaged Retail and Insurance-based Investment Products (PRIIPs) and the supporting Key Information Document (KID) is a very important piece .

PRIIPs include investment funds, structured products and derivatives. Undertakings for the Collective Investment in Transferable Securities (UCITS) funds with share classes available to retail investors are also in scope following the end to the UCITS exemption on 1 January 2023.

PRIIPs regulation and PRIIPs reporting have been associated with controversy, confusion and change since the beginning, with a series of delays and public disagreement between the investment industry and the European Supervisory Authorities (ESAs). Furthermore, the UK’s decision to diverge from the EU PRIIPs Regulatory Technical Standards (RTS) brings another layer of complexity to the compliance of PRIIPs. Thus making it all the more critical for fund managers to have the right tools in place to be able to comply and ensure accurate pre-contractual documents are published and delivered to investors.

Eight ways FE fundinfo can help you to comply with PRIIPs Regulation

1. Regulatory horizon scanning

To help ensure your funds are compliant ahead of time, FE fundinfo offers regulatory horizon scanning to monitor and interpret the regulations for you. Our in-house specialists keep on top of any regulatory changes to ensure your registered funds align with the latest updates. This helps to free up some of your time, whilst having that added reassurance that your funds are compliant.

2. Proven fund regulatory reporting solution

As regulations change over time, FE fundinfo ensures the timely compliance of your funds to meet new stringent requirements and tight deadlines. Our technology led PRIIPs reporting solution is updated to reflect the requirements your funds need to remain compliant. That means, we break down the requirements, communicate the changes and ensure the updates are reflected in your reporting solution.

In December 2022 alone, we produced 4 million PRIIPs KIDs for more than 110 entities to meet the 1 January 2023 deadline when the exemption period ended for European UCITS funds.

3. EPT data ingestion, validation & distribution

Your ability to provide transparent investor communications and fulfil regulatory requirements are contingent on the quality of your data inputs. We ingest, validate and disseminate your European PRIIPs Template (EPT) files in both FinDatEx and openfunds standards to help minimise your administrative overheads in the management and distribution of your EPT data. We also offer a translation service to WMDaten if you distribute your funds in Germany.

4. Risk, performance, and cost calculations

To fulfil your reporting requirements, data must be ingested and then further enriched to run the required risk, performance scenario, total cost and transaction cost calculations for your PRIIPs. The process of running calculations is made easy with the added option to outsource calculations to FE fundinfo. This means you minimise the risk of error and manual handling of data between vendors, while meeting the requirements of current (New PRIIPs/half-spread) and preparing for future (slippage) transaction cost calculation methodologies.

5. Regulatory document production

In addition to your EPT data and required calculations, we collate your narratives for insertion into branded document templates. Our document production platform has been built to meet your business and brand specifications, including the structuring of the layout and content of your PRIIPs KIDs.

Your PRIIPs KID production is made scalable through our workflow controlled document production platform that takes you through the required steps, including approvals and archive facility for optimal regulatory governance and oversight. Helping our customers streamline the bulk processing and production of documents, saving significant time and resource.

6. PRIIPs KID distribution & regulatory filing

PRIIPs KID distribution is made simple through our dissemination service where we push your documents out into the market for publication on distributor and media sites, as well as regulatory filing for local market authorities. You have the option to select your target recipients or leverage our unrivalled dissemination network to reach your investors. Thus, ensuring the delivery of pre-contractual disclosures to support your potential customers’ investment decision process.

7. PRIIPs SRI active monitoring and alerts

A PRIIPs KID must be updated and reissued when the published Summary Risk Indicator (SRI) no longer represents the majority of observations over the last 4 months. We actively monitor fluctuations in your SRI and alert you when your PRIIPs KID needs to be updated and reissued. Taking that extra step to ensure your ongoing compliance with PRIIPs Regulation.

8. Managed service

Last but not least, you are able to outsource your PRIIPs KID production to FE fundinfo. Remove the administrative burden from your teams and focus on your core business.

FE fundinfo will manage the data workflows required to produce these documents upon receiving relevant data updates. We will also ensure you remain compliant and that new KIDs are drafted and approved when changes are made, or alerts are issued when a new PRIIP KID needs to be published.

Book a meeting today to discuss your regulatory reporting and document production requirements in greater detail.

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