ESAs update PRIIPs FAQs

The ESAs have updated the FAQs on the PRIIPs KID to include a number of new questions, including guidance on:

  • confirming that the categorisation of a retail investor should follow the MiFID 2 definition and not take account of any national categories of “semi-professional” investor or similar;
  • how to categorise credit-linked notes in terms of their MRM calculation;
  • calculation of the number of trading periods that compose one year;
  • what “rolling” means;
  • some specific permitted adjustments to what should otherwise be prescribed text in relation to OTC derivatives;
  • how information on MOPs should be provided – for instance, providing the investor with information only on the underlying investment options the investor is actually considering; and
  • how to give costs information in a generic KID for a MOP;