Packaged Retail and Insurance Based Investment Products
On 22 December 2022, the Malta Financial Services Authority (‘MFSA’ or the ‘Authority’) issued a Circular on the applicability of Regulation No 1286/2014 on Key Information Documents (‘KIDs’) for Packaged Retail and Insurance Based Investment Products (‘PRIIPs’) to Fund Managers and Funds. This follows a previously released circular from May 2022 on a similar matter.
What you need to know
The Regulation requires that the PRIIPs KIDs contain specific key information on an investment product in a prescribed way and in a standard format which makes it simple for retail investors to assess and compare products. This is applicable to the following:
- PRIIPs manufacturers
- Persons advising on such products
- Persons selling such products
The above should also be providing an investment opportunity to EEA Retail Investors where the product’s return is subject to the performance of assets which are not directly purchased by the EEA retail investor.
Units in UCITS and AIFs constitute PRIIPs for the purposes of the Regulation.
Therefore it follows, that the PRIIPs Regime applies to AIFMs and self-managed AIFs as well as UCITS management companies and self-managed UCITS (‘Entities’) who also offer PRIIPs to retail investors as outlined above.Â
Important information
Entities already offering PRIIPs
PRIIPs KIDs must be kept updated at all times. Updated PRIIPs KIDS must be filed with the MFSA.
New applications
PRIIPs KIDs submitted as part of a new application should be submitted together with all other application documents.
Passporting
When passporting out of Malta, the MFSA shall forward the latest PRIIPs KID to the Host Regulatory Authority.
How can we help?
Our team in Malta combine its industry knowledge to offer tailored solutions to Licensed Entities in line with the applicable regulatory requirements. Please contact us on compliance-malta@apexgroup.com or zasmalta@zasmalta.com to initiate discussions on your obligations.
