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New requirements for investment funds: PRIIPs key information document replaces key investor information – FAQs:

By and on August 28, 2022
Posted In Funds

As of 1 January 2023, capital management companies (Kapitalverwaltungsgesellschaften) have to prepare a PRIIPs key information document for an investment fund that is distributed to private and semi-professional investors. The following is a summary of five frequently asked questions and answers on this topic:


What is the purpose of the key information document?

  • The key information document shall enable retail investors in the EU to better understand the basic features and risks of PRIIPs (Packaged Retail and Insurance-Based Investment Products).
  • In addition, the requirements for PRIIPs key information documents should lead to a better comparability of such products across Europe.

For which funds does a PRIIPs-KID have to be prepared?

  • All open-ended and closed-ended public investment funds with an existing sales notification (Vertriebsanzeige).
  • In principle, for all open-ended and closed-ended special investment funds that issue units to semi-professional investors. This does not apply to special funds that will no longer be actively distributed after 1 January 2023, i.e. no new units will be issued to investors and this does not have to be expected.

When does the PRIIPs-KID have to be made available?

  • Until 31 December 2022, capital management companies (Kapitalverwaltungsgesellschaften) are excluded from the obligation to prepare a PRIIPs-key information document if they prepare key investor information according to the KAGB (Kapitalanlagegesetzbuch).
  • As of 1 January 2023, capital management companies (Kapitalverwaltungsgesellschaften) must prepare the PRIIPs key investor information sheet for an investment fund that is distributed to private and semi-professional investors. At this time, the obligation to prepare key investor information will no longer apply. Reason: The key information document, which meets the requirements of the PRIIPs Regulation, is considered equivalent to the key investor information.

In which form does the PRIIPs-KID have to be provided?

  • The PRIIPs-KID must be made available free of charge.
  • In general, it has to be made available on paper. Under certain conditions, it may be made available via other media (permanent data carrier or website).

What is the scope and format of the PRIIPs-KID?

  • The PRIIPs Regulation and the Delegated Regulation specify numerous (in some cases complex) details regarding the form and content of the key information document.
  • To illustrate this, the following points should be mentioned here as examples:
    • The information contained must be precise, fair and clear and must not be misleading.
    • The order and headings of the sections for the key information document are compulsorily stipulated.
    • Certain passages or headings must be highlighted.
    • The key information document shall be drawn up with a maximum of three sides of A4-sized paper when printed.
Frank Müller
Frank Müller advises investment fund managers, institutional investors, asset managers as well as their regulated and unregulated fund vehicles in all regulatory and real estate law matters in connection with the set-up, structuring and management of funds and their acquisitions. He has extensive experience in the following: (1) Foundation of fund management companies and their regulatory advice, including consultations with the respective authorities in Germany and abroad; (2) Set-up of investment funds for retail and institutional investors (both contract and corporate type funds); (3) Structuring of funds and transactions for institutional investors and asset managers; (4) Regulatory and real estate law advice of funds, fund managers and institutional investors with regard to asset deals, share deals, unit deals and project developments in Germany and abroad.

Hannah Henseling
Hannah Henseling works in investment funds and real estate. She advises fund management companies, institutional investors, asset managers and their regulated and unregulated fund vehicles on investment law and real estate law issues. Her advisory practice includes regulatory advice to fund management companies and investment funds in connection with the management and set-up of investment funds (public and special funds). She also advises institutional investors in the context of individual and portfolio transactions as well as in the ongoing asset management. During her legal clerkship, Ms. Henseling worked at a major international law firm as well as for AHK Malaysia in Kuala Lumpur. Prior to joining McDermott, she worked as an attorney at a boutique law firm specializing in business law advice in Frankfurt/Main.