The Regulation on Key Information Documents for Packaged Retail and Insurance-Based Investment Products (PRIIPs) will introduce KID requirements for certain complex financial products. Third-pillar pension products are excluded from the scope of the regulation. Member States can nevertheless adopt national rules on providing key information about these excluded products. The Dutch legislature is making use of this option by introducing the obligation to provide a KID for pension products. As tax treatment is essential for these products, providers will also need to include information about the tax treatment in the KID, in addition to the other information to be provided in the KID under the PRIIPs Regulation.
The KID is suitable for third pillar pension products, as these products are similar to PRIIPs in terms of structure, effect and objective. In addition, given the freedom of choice that consumers have in the third pillar, it is important that they be able to compare pension products and PRIIPs.
The entry into force of the PRIIPs Regulation and the abolishment of the financial information leaflet affects how providers of complex products must warn about the risks involved with these products in advertisements, and how they include information about future revenues in advertisements and offers. The risk indicators to be included in the current financial information leaflet will be replaced by new risk indicators to be published on the website of the Dutch financial markets supervisor AFM.