Should a KID disclose cost information and scenario information about 1 year and half the RHP in case
the investors may not be allowed to exit a PRIIP before the end of the RHP?

Question

ESA Joint Committee (EBA, ESMA, EIOPA) · Accepted Answer

For PRIIPs where it is not possible for the retail investor to exit the product before the RHP, performance
and cost information should only be shown in relation to exiting the product at the RHP. The intention
for performance scenarios to not be shown at intermediate holding periods where the product cannot
be cashed in is indicated in point 9 of Part 1 of Annex V of the PRIIPs Delegated Regulation concerning
narrative element F.
As stated in point 90(d) of Annex VI of the PRIIPs Delegated Regulation, where a PRIIP does not allow
exit before the RHP, costs should be shown only at the RHP. Consequently, in this case, for Table 1,
‘Costs over time’, the intermediate holding periods do not need to be shown, and in Table 2,
‘Composition of costs’, costs should also be shown at the RHP, including if the RHP is more than one
year.

Should a KID disclose cost information and scenario information about 1 year and half the RHP in case the investors may not be allowed to exit a PRIIP before the end of the RHP?

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