Key Information Document (KID)

What is a PRIIPs KID?

The Packaged Retail Investment & Insurance (PRIIP) is a regulation from the European Parliament that is effective from January 2018. The regulation requires every products manufacturer and distributor to provide retail investors with a Key Information Document (KID) in order to strengthen investor protection and improve the investment decision and selection process.

Key Information Documents (KIDs) are documents designed to help investors to understand investment products' behaviour and support comparison with other similar investment products. The KIDs issued or manufactured by Nordea Bank AB (publ) in Finland are available below for FX and Interest Rate Derivatives. The KIDs for structured products and warrants and certificates can be found on the relevant page for each product. 

FX Derivatives

  1. FX Forward 3MOpens new window
  2. FX Forward 1YOpens new window
  3. FX Swap 3MOpens new window
  4. FX Swap 1YOpens new window
  5. FX Forward with Time Option 3MOpens new window
  6. FX Forward with Time Option 1YOpens new window
  7. Non-deliverable forward 3MOpens new window
  8. Non-deliverable forward 1YOpens new window
  9. FX Average rate forward 3MOpens new window
  10. FX Average rate forward 1YOpens new window
  11. Participating forward 3MOpens new window
  12. Participating forward 1YOpens new window
  13. Average rate option (Asian Option) 3MOpens new window
  14. Average rate option (Asian Option) 1YOpens new window
  15. Risk reversal 3MOpens new window
  16. Risk reversal 1YOpens new window
  17. Seagull 3MOpens new window
  18. Seagull 1YOpens new window
  19. FX Forward Extra (European) 3MOpens new window
  20. FX Forward Extra (European) 1YOpens new window
  21. FX Reverse Forward Extra (European) 3MOpens new window
  22. FX Reverse Forward Extra (European) 1YOpens new window
  23. Accumulator 3MOpens new window
  24. Accumulator 1YOpens new window
  25. FX Booster 3MOpens new window
  26. FX Booster 1YOpens new window
  27. FX Synthetic Forward 3MOpens new window
  28. FX Synthetic Forward 1YOpens new window
  29. FX Floorward 3MOpens new window
  30. FX Floorward 1YOpens new window
  31. European FX Option (bought) 3MOpens new window
  32. European FX Option (bought) 1YOpens new window
  33. FX Single Barrier Knock-in Option (bought) 3MOpens new window
  34. FX Single Barrier Knock-in Option (bought) 1YOpens new window
  35. FX Single Barrier Knock-out Option (bought) 3MOpens new window
  36. FX Single Barrier Knock-out Option (bought) 1YOpens new window
  37. FX TARF 1YOpens new window

About PRIIPs

The PRIIPs (Packaged Retail and Insurance-based Investment Products) Regulation aims to improve retail investor protection by:

  • Providing basic pre-contractual information called KID (Key Information Document). The KID documents will provide you with key information on the investment product you may be interested in. It is not a Marketing material.  This document will help you to better understand the nature, risks, costs and potential gains and losses of your chosen investment product. 
  • Improving the quality and comparability of information on the key features of investment and risk mitigating products (in particular on risk, performance and costs). The ability to better compare your selected investment products will increase your investor protection and make selections easier.
  • The regulation also requires investment products to be explained in plain language, in order to allow the investor easier comparison between products.

PRIIP Scope 

The PRIIPs regulation has many similarities and overlaps with MiFID II but the big difference is that PRIIPs is specifically intended for retail investors (i.e. customers classified as non-professional customers under MiFID II). Furthermore, the regulation merely covers so called PRIIP-products. 

A PRIIP is defined as an investment where the amount repayable to a retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets that are not directly purchased by the retail investor. Some of the following investment or risk mitigating products are included in the scope:

  • Structured products
  • Exchange traded products
  • Derivatives
  • UCITS (delayed until 31 December 2019)
  • Retail AIFs 
  • Insurance-based investment products 

Under the regulation, manufacturers/issuers are obliged to produce a Key Information Document (KID) for each product in scope. The KID is a 3-page document which must be provided in the local language of the investor and be published on the company website prior to product being offered to retail investors. Any distributor or financial intermediary, who sells or provides advice about PRIIPs to a retail investor or receives a buy order on a PRIIP from a retail investor, must provide the investor with a KID.