Framesoft PRIIPs KID GENERATOR (FPG) supports financial institutions to comply with the PRIIPs KID Regulation. Manufacturers and distributors of packaged retail and insurance-based investment products are challenged to provide Investors with the Key Information Document (“KID”) to comply with the PRIIPs (Packaged Retail & Insurance-based Investment Products) KID Regulation.
FPG permits a PRIIP manufacturer to set up, manage and generate all required KIDs by virtue of FPG’s template administration functionality. As well, the manufacturer can decide to “white label” the product KIDs and supply them to intermediaries, if so required and legally permitted.
KIDs in general need to follow rules and formatting prescriptions set out in the regulation. FPG is ideally prepared to cope with these requirements, as well as it is flexible enough to be updated and reconfigured in case of amendments to the regulations in force.
Document Setup
The manufacturer can create the PRIIP’s KID via modelling of a Template structure by defining elements to be inserted following the sequence laid out by the regulation. FPG covers the requirements as spelled out by the regulation:
1. Title
The document must clearly state that it is a "Key Information Document" and specify the name of the PRIIP.
2. Purpose
A brief statement explaining the purpose of the KID, which is to inform investors about the nature and risks of the investment product being offered.
3. What is this Product?
This section provides an overview of the product, including its objectives, the type of investor it is designed for, and how long the investor should plan to hold the investment such as:
- direct or indirect exposure to the underlying investment assets,
- description of the underlying instruments or reference values,
- specification of the markets the PRIIP invests in etc.
4. Risk
This section must include a summary risk indicator (SRI) on a scale from 1 to 7, where 7 represents a higher risk. It should also provide information on the potential gains or losses from the investment, including scenarios for unfavourable, moderate, and favourable market conditions. “What are the risks and what could I get in return”, including treatment of topics required by the regulation, e.g.:
- Summary Risk Indicator
- Possible maximum loss of invested capital
- Appropriate performance scenarios
- Where applicable, information on conditions for returns and scenarios exemplifying risks
- Taxation statement
5. Pay Out
What happens if the PRIIP manufacturer is unable to pay out - information on whether the investment is covered by a compensation scheme and the implications for the investor.
6. Costs
Detailed information on the costs associated with the investment, including one-off and ongoing costs, as well as how these costs affect the potential returns.
7. Holding Period
Guidance on the recommended investment period and information on the investor's ability to withdraw money before the end of this period, including any penalties or fees that may apply.
8. Complain
Information on the process for filing complaints about the product or the conduct of the PRIIP manufacturer.
9. Other relevant information
Directions to where the investor can find more detailed information about the product and its risks.
KID Setup - scalable & flexible
FPG provides easy copy and paste, as well as reusability of template sections where applicable or desired. It also offers multiple language compatibility. This means a KID template is assembled once and can be generated in multiple languages. Any change to the template will be reflected in all languages automatically.
At the same time, all future reviews and amendments of the regulation can be quickly realized using FPGs powerful template editing and scripting tools.
Based on Framesoft Structured Products (FSP)
FPG has been built upon the solid foundation of Framesoft Structured Products (FSP), which provides the complete tool set for defining & treating Structured Products Issues.
- Template Editor with full integration of database and scripting functionality
- Text block assembly configurator (FDA) for high-speed product management and creation of multi-language documentation templates
- Sophisticated and extendable data financial products data model for fast and easy set-up of new products and static data requirements
- Static Data repository administration
- Generic Web Service Interface for the configuration of document generation requests
- Complete Audit Trail
- Document Archive for Audit Safe storage of all request handling data and related, generated documentation
- Sophisticated overview screens for the management and control of the documentation generation process
- Organizational Structures are reflected in the Administration of users, groups, and profiles
- Approval Process Management supporting the complete workflow of new issuance, documentation, and data management
- Finely grained privilege management system with role & user-based authorization to handle access to folders, documents, and fields
Integration Beyond Organizational Borders
- Straight Through Processing (STP) achievable by provision of complete data model and integration of FSP into existing corporate legacy infrastructure
- Application Integration with Sales Pricer or Risk Management, as well as an internal Contract Management solution (e.g. Framesoft Contract Repository (FCR) for Master Agreement Management)
- Completely configurable set of distribution channels to internal and external information providers, corporate web sites, exchanges, legacy applications, etc.
- Automatic e-Mail creation for distribution of documentation and related information.
- Integration of OTC transactions as a part of FSP trades and issues on request (if required)
High Speed Product & Documentation Management
- Matrix management of mandatory & optional documentation and its approval as well as distribution channels dependent on the issue or product type
- Form assembly management modules for high-speed management and creation of product data capture screens
- High speed & volume server-side document generation as well as parallel generation of large documents (e.g. > 1.000 pages)
- Scenario Analysis embedded
- Charts / Graphics based on real time data
- Documentation Verification / Tests and comparison module (FDV) embedded
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