The ESAs have published an updated Q&A and Flow diagram for risk and reward calculations in the PRIIPs KID (Key Information Document)
ESMA, EBA and EIOPA have published on July 19th an updated Q&A document, bringing clarification on a number of topics. These include the confirmation that KIDs need to be publicly available on manufacturer's website, clarifications on how the cost and performance figures are to be presented in the KID when the RHP is less than one year and clarification on how costs are to be presented in case the moderate scenario shows a total loss of capital or even a negative return.
The ESAs have also published updated Flow diagrams for the risk and reward calculations in the KID, which now contains diagrams on the performance calculations for the stress scenario.
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