Knowledge Base

← Marketing of Financial Instruments, Solicitation, Distance Selling, and Client Advisory

Questions

What methodology is used to calculate the SRRI in the UCITS KIID?

The VaR-equivalent Volatility at 97.5 percent
Historical volatility based on annualised standard deviation of weekly returns over five years
Agency ratings according to a correspondence matrix
Past performance over ten years

What is the main scope of application of the UCITS KIID compared to the PRIIPs KID?

UCITS only
AIFs accessible to the general public only
UCITS and AIFs accessible to the general public
All packaged retail and insurance-based investment products

What is the main criticism of PRIIPs scenarios during a prolonged bull market?

The scenarios are not based on historical simulations
Even the unfavourable scenario may show gains, creating a misleading impression of safety
The scenarios do not cover enough time horizons
The scenarios are not updated annually

The SRI in the PRIIPs KID combines only market risk.

True
False

The KIID may be maintained for the information of professional clients even after the mandatory application of the PRIIPs KID.

True
False

Main risk indicators

Click to see answer

From what date has the PRIIPs KID been mandatorily applicable to all UCITS and AIFs open to retail investors?

31 December 2021
1 January 2023
31 December 2022
1 January 2024

Categorize items by dragging them to the appropriate zones

Items to categorize:

Entry and exit fees
Total costs in euros and as a percentage of annual return
Categories:

Costs presented in the UCITS KIID

Costs presented in the PRIIPs KID