On 19 November 2018, a European Commission spokesperson announced that it is set to delay the extension of the Packaged Retail and Insurance-based Investment Products ("PRIIPs") Key Investor Document ("KID") requirement to UCITS funds by another two years to allow a comprehensive review of the disclosure regime.

Temporarily exempt from the provisions of the PRIIPs Regulation (Regulation 1286/2014), the proposed two year concession means that UCITS shall remain subject only to the UCITS Key Investor Information Document (“UCITS KIID”) requirements under the UCITS Directive until 31 December 2021.

On 4 December 2018, Members of the European Parliament agreed that UCITS would be exempted from KID requirements for a further two years. This paves the way for the delay to be officially enacted, subject to the agreement of the European Council.

The decision will be made in the context of ongoing discussions between European co-legislators and industry associations on the timing of a wider and more comprehensive review of PRIIPs based on retail investors’ experiences and proposed amendments to the PRIIPs KID rules for UCITS management companies, investment companies and persons advising on, or selling, units of UCITS.

Opinions submitted by 7 December 2018 in response to a European Securities Authorities Consultation Paper (issued on 8 November 2018), on proposals to change disclosure requirements on investment products’ performance scenarios and other specific issues identified in the practical application of requirements since the implementation of the KID, will also be taken into consideration.

Maples is continuing to work with clients both in analysing the implications of PRIIPs on their funds and assisting with the production of KIDs where required.