Regulation (EU) No 1286/2014 (PRIIPs Regulation) came into force on January 1st 2018. This regulation relates to key information documents (KIDs) for packaged retail and insurance based investment products (PRIIPs). The regulation lays down regulatory technical standards concerning the presentation, content, review and revision of KIDs and specifies requirements for the provision of these documents.
One of the many items that has to be reported in the KIDs is the transaction costs incurred by the PRIIP over the past three years. This calculation is based on a formula relating to historical actual transaction costs. However, for PRIIPs that have been operating for less than 3 years, transactions costs prior to start of operations have to be estimated using a prescribed formula and a suitable reference index.
The data required for this calculation includes monthly index constituents and their weights for a specified day of the month with 12 months history, and bid-ask prices for each of the constituents. Sourcing and managing this data can be a complex and burdensome task as the data is not available from a single source. RIMES is therefore offering a new bespoke service for our clients as part of our Managed Data Service (MDS).
RIMES MDS can service clients with two options for addressing this specific regulatory reporting requirement:
- For firms seeking data sources to support internal calculation of the index transaction cost, RIMES can provide the underlying price history and ongoing data feeds (subject to data licenses in some cases) with the required bid and ask prices to calculate the index transaction costs
- In addition RIMES can carry out this calculation on behalf of a client on a per index basis (again subject to data licensing) and provide the new monthly data points in an existing or new data feed.
Please contact RIMES to find out more about the RIMES MDS PRIIPs/KIDs Transaction Cost (Index Data) Service.