Recent developments on moving from UCITS KIIDs to PRIIPs KIDs
Following on from our communication in September 2021 that outlined the upcoming requirements for PRIIP KIDs and how Waystone can help you navigate the challenges of moving from UCITS KIIDS to PRIIPs KIDs, we are advising on some key developments:
- The European Parliament has adopted the quick fixes texts (draft regulation and draft directive revising the PRIIPs Regulation and the UCITS Directive respectively) which means that the deadline for the transitional arrangements for UCITS has been extended to 31 December 2022.
- It has been confirmed that non-retail share classes of UCITS funds will be able to choose whether to publish a UCITS KIID or a PRIIPs KID.
- The timelines for initiating storage (1 January 2022) and disclosure (1 January 2025) of transaction costs do not change
- The deadline for the issuance of a Swiss KID or equivalent PRIIPS KID, for all funds offered to private clients in Switzerland, has also been aligned to 31 December 2022. More information can be found here.
Although the texts have not yet been formally adopted by the Council, parliament and Member States have reached an agreement on the content.
Whilst there is now some more breathing room, we strongly recommend that asset managers start the migration preparation today as the switch to PRIIPs brings higher levels of complexity in terms of data gathering, calculation, and disclosure.
How can Waystone help?
Waystone can assist with the calculation and monitoring of data, document production, as well as the disclosure of performance data on the Waystone website. This can include:
- The calculation of past performances, performance scenarios, the SRI, and transaction costs
- The calculation of the performance fee data (the PRIIP requirement demands an average of past performance fees)
- The disclosure and calculation of charges data, for example, the Reduction in Yield calculation
- The monitoring of the SRI and the performance scenario data
- Monthly performance scenario calculation, updates, and publication on the website
- Calendar year performance calculation and updates on the website, including charts and disclaimers
- The setting-up of the PRIIPs to comply with the regulation and any follow up on regulatory changes.
In order for Waystone to provide this service, asset managers must provide 10 to 15 years of historical NAV or proxy data. The exact length is dependent on the share class launch date and on the Recommended Holding Period (RHP). Asset managers will also be required to begin storing the implicit transaction costs (the arrival prices) as of 1 January 2022 for use by Waystone for the transaction cost calculation as of 1 January 2025.
For more information, please reach out to your usual Waystone representative or contact us below.
