when buying, there is a message that their data provider does not have a KID available, and the suggestion to look for it on the fund manager's website.
PRIIP Regulation lays down potentially heavy sanctions for non-compliance. These can include fines up to €5 million, or twice the amount of profits gained by avoidance - as well as public censure or prohibition orders banning further marketing of the product. US funds are under pressure to prohibit marketing their products to EU residents in part as a consequence of such EU regulations.
Prior tick a box to confirm you are a sophisticated investor and understand the risk ...etc. will transition over to more specific requirements for exemptions, which are a bit catch-22 i.e. needing to meet two of the following :
That the investor has carried out an average of ten transactions per quarter over the previous four quarters in the relevant instrument. i.e. the fund; That the investor’s, relevant, financial instrument portfolio exceeds €500,000; That the investor works or has worked in the financial sector in a professional position which requires knowledge of the transactions envisaged.
So even if you're a €500,000 investor, you can't fulfill the first option and have traded 10+ times each quarter if the product isn't already available to you, leaving a requirement of €500,000+ and being (or having been) a professional financial sector worker (that provided knowledge of the transactions).
Best hope is if point of sale i.e. your brokers opt to provide their own KID when not already available. The rules are basic : A maximum of three pages of A4; In a standardised format and content prescribed in the PRIIP Regulation (see below); Provided in clearly expressed, easy to understand language; No colours or corporate branding that may distract the reader; If distributed in another EU state, translated into the official language of that state.
With content : The title “Key Information Document” displayed prominently at the top of the page; The purpose of the document – key information about this investment product; The name of the product. i.e. the fund; A warning that the product may be difficult to understand; A description of the product – type, objectives, target investor; A description of the risks and potential rewards: risk indicator, on a scale of 1-7 and performance scenarios; What happens if the manufacturer is unable to pay-out; Details of all costs to be borne by the investor, including transaction costs and ongoing costs expressed in terms of impact on yield; Recommended minimum holding period; How to complain; Other relevant information.
Conceptually could be badge regulation similar to warnings about browser cookies. But is bad in the sense that its the start of a slippery road towards locking EU investors into EU investment products and likely paying more than might otherwise have been the case.
Maybe good intent (or ulterior motive), just another layer of EU bureaucracy. Perhaps we should be more like other EU member states and just ignore things. UK brokers/providers could for instance include a I've read the KID tickbox and a dead link to the KID and record that the retail client had acknowledged that they'd read the KID before having traded. The likes of youinvest might be better served/protected that way than their current choice.