Comply with the new KIID regulation

Paragon helps the Financial Services industry comply with the new KIID regulation


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Supporting the multi-channel delivery of your Key Investor Information Documents

What is the PRIIP regulation?

The Packaged Retail and Insurance based Investment Products (PRIIPs) regulation came into effect on 1st January 2018. This regulation has been set by the European Commission and it applies to PRIIPs products purchased by an EEA Resident Retail Investor anywhere in the world.

What are the PRIIP Products?

PRIIP products covered by the regulation include:

  • life assurance based investment products
  • investment funds
  • structured term deposits
  • derivatives

What problem does the regulation solve, and for whom?

The purpose of the regulation is to safeguard Retail Investors by increasing investor protection. This is done by the creation and provision of a Key Investor Information Documents (KIID) to investors, making it easier for them to understand and compare key features, the risk and reward profile, and the costs of investing into the PRIIP. The KIID, one for each PRIIP, is required by law to be given to the investor before an investment transaction can take place, as stipulated by the European Commission.

How can Paragon help you comply with the regulation?

Any company manufacturing, advising on, or selling the PRIIP has a legal obligation to provide this document to investors before the investor can buy into the PRIIP. The regulation also stipulates that these companies, typically Financial Services firms, need to provide proof of sending these documents to investors and be able to report back on this to their Compliance departments.

Our PRIIP KIID Distributor Solution

Financial Services firms need a reliable system that can send out these documents at the time requested by the investor, via their requested channel. They must also be able to capture the proof of sending out these documents, and have a method in place to report back to their Compliance departments that these documents are actually being sent out.

The Paragon KIID Distributor solution delivers this service, and it can be configured to send out PRIIP KIIDs via both print and digital channels. Furthermore, our solution provides Management Information and Reporting on the KIIDs distributed, so a record can be maintained for compliance purposes.

The solution setup and configuration process is simple, and includes the following steps:

  1. Understand client requirements and business readiness to provide KIIDs
  2. Advise on the best practice around KIID delivery
  3. Design the right solution for current and anticipated future volumes
  4. Setup the KIID Distributor client solution, configure any bespoke settings including Cover letter templates for both print and email delivery channels
  5. Receive PRIIP KIIDs from the client or their 3rd party intermediaries such as Financial Express, Funds Library, KNEIP or others
  6. Upload PRIIP KIIDs into the client account and map to the relevant PRIIP Asset Class
  7. Paragon and the client then test the solution and sign off
  8. Solution goes live

The above implementation takes approximately 10 working days after the client’s requirements have been captured.

The Paragon Advantage

Paragon has significant experience in sending out regulatory communications for the Financial Services industry. We have been delivering the KIID distributor solution and distributing UCIT (Undertakings for Collective Investment in Transferable Securities) KIIDs in this way since for over fifteen years. We have now included the PRIIP KIIDs functionality in the same solution, giving clients a single point of access and an interface to send out both types of documents.

Paragon is trusted to deliver this solution by some of the leading Financial Services and Asset Management companies in the UK.

Can we also send out UCIT KIIDs?

Yes. We can upload UCIT KIIDs into the same single KIID Distributor solution. Your users will be able to distribute both PRIIP KIIDs and UCIT KIIDs using a single system. MI and Reporting is provided on both sets of documents being sent.

For more product information you can click here to download the KIID Distributor brochure, and if you would like to discuss your requirements further please get in touch with us by filling in the form below.

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