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EU PRIIPs Regulations

December 5, 2017

The European Union packaged retail and insurance based investment products (PRIIPs) regulations become effective as of January 1, 2018.  These regulations are relevant for investment managers, whether based in the EU or outside of the EU, that make open-end investment funds available to EU retail investors.  Retail investors include high net worth individuals, municipalities and local authorities that cannot "opt up" in order to meet the definition of a professional client.  It is important to note that under the PRIIPs regulations, an investment fund could be deemed to be made available to an EU retail investor even if the fund is relying on reverse solicitation for purposes of AIFMD.  Additionally, while managers may not directly distribute their fund interests to EU retail investors, the PRIIPs regulations may also apply, depending upon the circumstances, if the manager has entered into third party solicitation agreements with wealth managers or private banks and the underlying client is based in the EU.

If an investment manager wishes to accept investments from EU retail investors that cannot satisfy the requirements to "opt up" to professional client status, then the manager will need to prepare a key information document (KID) in accordance with the PRIIPs regulations.  The content of the KID is prescribed under the regulations and includes a summary risk indicator and analysis of performance scenarios under specified conditions.

The attached memorandum prepared by our investment management alliance partner, Simmons & Simmons LLP, entitled EU PRIIPs Regulation:  Do you need a "KID" for your AIF?, provides additional detail regarding the PRIIPs regulations.

You may contact your primary Investment Management Group attorney at Seward & Kissel for more information regarding the PRIIPs Regulation, including the need to prepare a KID.




If you have any questions regarding the matters covered in this memo, please contact any of the partners and counsel listed below or your primary attorney in Seward & Kissel's Investment Management Group.



John J. Cleary


(212) 574-1255

Maureen R. Hurley


(212) 574-1384

Paul M. Miller


(202) 737-8833

Joseph M. Morrissey


(212) 574-1245

David R. Mulle


(212) 574-1452

Steven B. Nadel


(212) 574-1231

Anthony C.J. Nuland


(202) 661-7140

Marlon Q. Paz

(202) 661-7178

Patricia A. Poglinco


(212) 574-1247

Christopher C. Riccardi


(212) 574-1535


Jack Rigney


(212) 574-1254

John E. Tavss


(212) 574-1261

Robert B. Van Grover


(212) 574-1205


Robert L. Chender


(212) 574-1415

Ivy Wafford Duke


(202) 661-7179

Keri E. Riemer


(212) 574-1598

David Tang


(212) 574-1260




About Seward & Kissel LLP


Seward & Kissel LLP, founded in 1890, is a leading U.S. law firm with an international reputation for excellence. We have offices in New York City and Washington, D.C.

Our practice primarily focuses on corporate, litigation and restructuring/bankruptcy work for clients seeking legal expertise in the financial services, corporate finance and capital markets areas.  The Firm is particularly well known for its representation of major commercial banks, investment banking firms, investment advisers and related investment funds (including mutual funds and hedge funds), master servicers, servicers, investors, distressed trade brokers, liquidity providers, hedge fund administrators,  broker-dealers, institutional investors and transportation companies (particularly in the shipping area).




This memo may be considered attorney marketing and/or advertising. Prior results do not guarantee a similar outcome.  The information contained in this memo is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter.  As such, recipients of this memo, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this memo without seeking appropriate legal or other professional advice.  This information is presented without any warranty or representation as to its accuracy or completeness, or whether it reflects the most current legal developments