Key information document (KID)

Question

Regarding the performance scenarios shown in an investment product's KID for a product with SRI 1: - Can the performance scenarios somewhat be considered commensurate with the "reality"? That a given scenario is in reasonable proportion to the resulting amount? - For example, is the actual outcome of SEK 0 after one month realistic or possible when the stress scenario that can be said to have occurred states that an investment of SEK 100,000, according to the information in KID, yields SEK 2.5 million after one month? - Finally, is it at all possible that a the stress scenario for a procuct with SRI 1 as in my example shows such a high positive result?

European Insurance and Occupational Pensions Authority · Accepted Answer

As indicated in Annex V, Part 2 of the PRIIPs Delegated Regulation (Commission Delegated Regulation (EU) 2017/653), the stress scenario is intended to set out what you might get back in extreme, i.e. negative, market circumstances. Therefore, subject to the specific features of the product, for example, whether there is a guarantee, it is expected that the stress scenario would normally show a significant loss in the amount invested.

Key information document (KID)

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