If the recommended holding period (RHP) of the PRIIP is less than one year, how should performance and cost figures be presented in the KID? Point 45 of Annex IV and point 76a of Annex VI of the Deleg

If the recommended holding period (RHP) of the PRIIP is less than one year, how should performance and cost figures be presented in the KID? Point 45 of Annex IV and point 76a of Annex VI of the Delegated Regulation specify how the performance and cost figures should be calculated for PRIIPs with a RHP of less than one year. In this case, the RHP (e.g. in terms of the information on performance in the heading of the Templates in Part 2, Annex V) should be stated in terms of days or months. For the performance scenario Template it is also relevant to replace the term “average return each year” with the term “percentage return”, and to delete the references to “annual” “per year” or “each year” in the cost Tables 1 and 2 as indicated in Annex VII. It is important to underline the importance of the other narrative explanations in the KID. The narrative included in the ‘What is this product’ section should clearly explain, for example, the financial structure of the product (i.e. avoiding jargon or formulae) and its economic rationale so as to inform retail investors on how the RHP is linked with the product features, including its objectives, risks and costs. For PRIIPs with a RHP of less than one year, it should also explain the implications of the figures being presented over the RHP rather than per year on the comparability with other PRIIPs of different RHP. In addition, Article 3(2) of the Delegated Regulation, explicitly requires retail investors to be informed about the potential higher risks if the PRIIP is not held to maturity or for the RHP in the section ‘What are the risks and what could I get in return’. In the case of open-ended PRIIPs with an extremely short RHP (e.g. only one day) holding them for longer is expected to significantly affect their risk. (Answer provided by the ESAs on the application of the PRIIPs Delegated Regulation, revised on 21 December 2022) IX. Derivatives [Last update 21 December 2022] 1. Should KIDs for ETDs be produced per individual series or can a KID with a lower level of granularity be provided?