Date us if you need a partner to make PRIIPs KIDs!

Posted by Matteo Tesser on 16 May 2016 | 0 Comments

Tags: PRIIPS, KIDs, Compliance, Structured Products

On March 31st ESMA published the final draft of regulatory technical standards (RTS) on Key Information Documents (KIDs) for Packaged Retail and Insurance-based Investment Products (PRIIPs). The regulation will be in force on January 1^st 2017.

With this new regulation PRIIPS Manufacturers must generate pre-contractual documents on almost any financial product addressed to retail market (e.g. OTC Derivatives, Structured Products/Bonds/Deposit, Unit-Linked and Index Linked).  The KID (which will also replace the actual KIID actually required on UCITS funds on 2020) contains qualitative and contractual information but will also contain a quantitative risk analysis based on historical series analysis for linear products and historical simulation bootstrapping for non-linear products.

Collecting, elaborating, organizing and updating such information is not straightforward.

The Fairmat team followed the regulation development for almost 2 years and worked hard on the generation of similar documents on structured products. Our technical procedures has been tested on 10,000 different retail products available on our Fairmat Cloud Platform while from several years we are providing  to insurance companies technology and consulting to generate regulatory compliance documentation for insurance-life products. 

Leveraging these experiences we developed a solution to help PRIIPS Manufacturers to handle the entire process to generate/monitor/update KIDs.

Our goal is to make PRIIPs KIDs  generation a data-driven process, where, after an initial setup and customization, every step can be automatized while maintaining the high level of detail required by the normative.

The Fairmat for KIDs platform is able to calculate KID quantitative sections (MRM, CRM, performance scenarios and costs), by retrieving qualitative and terms information for the customer infrastructure and by merging them into pdf documents customized and localized as required.  KIDs documents can be automatically published into the customer infrastructure, and as well PRIPS can be monitored in order to alert if an update is required.

We can also provide the data-feed needed to generate the calculations from our independent sources and the system can be configured to be scripted via web services (in alternative or combination to manual operation).