Asset Management and Investment Funds
ASSET MANAGEMENT AND INVESTMENT INVESTMENT FUNDS
PRIIPs: New KID on the Block
The European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2022 entered into force from 1 January 2023 and set out the legislative provisions regarding the requirement for UCITS to produce a PRIIPs ‘key information document’ (KID) from that date. The production of a PRIIPs KID by a UCITS will satisfy the pre-existing obligation to produce a UCITS ‘key investor information document’ (KIID).
For more information on the impact for UCITS of using the PRIIPs KID, please see our detailed briefing here.
AIFMD II
On 25 November 2021 the European Commission published its much-anticipated draft legislative proposals in respect of the AIFMD review and the associated amendments to the UCITS Directive. The proposals include amendments on loan origination, delegation, substance and liquidity management and are designed to improve the functioning of the alternative investment funds market. The proposals also included amendments to the UCITS Directive with the aim of harmonising various rules under the two frameworks. Once a compromise text has been agreed, the next step in the legislative process will be for the Council of the EU, the European Parliament and the European Commission to enter into trilogue negotiations, which are expected to commence later in Q1 2023, to agree on the a final version of the the AIFMD II Directive for publication in the Official Journal of the EU.
“The proposals also included amendments to the UCITS Directive with the aim of harmonising various rules under the two frameworks."