AREP PRIIPS KID–

Ensuring regulatory compliance with the PRIIPs Regulation

Our intelligent arep PRIIPs KID solution meets the complex requirements of the regulation and offers the following benefits:

  • Comprehensive fund data acquisition
  • Calculation of all relevant indicators
  • Web-based online solution (Software as a Service – SaaS)

THE PRIIPS REGULATION

The PRIIPs Regulation poses new and formidable challenges for unit-linked insurers: They are required to create a Key Information Document (KID). This KID should depict the main features of a fund or investment product according to predefined specifications. It should be brought up to date on a regular basis and made available to the customer.

CUTTING-EDGE, CUSTOMISABLE END-TO-END SOLUTION

arep PRIIPs KID is a comprehensive, secure, efficient and future-proof solution designed to meet the complex requirements of the new PRIIPs Regulation. Its modular architecture allows customers to implement either individual components or the full-service model to:

  • Collect all PRIIPs-related fund data from asset managers
  • Calculate all relevant indicators based on the recommended holding periods. Including funds for which no data can be obtained
  • Create and distribute KIDs, both generic and for underlying investment options

WE SET THE STANDARDS

Acarda is one of three organisations in Europe collaborating with industry associations to develop the standards for data exchanges between asset managers and insurance companies. Our expertise makes us a leading expert on the comprehensive and legally-compliant implementation of all requirements for PRIIPs KIDs.

AREP PRIIPS-KID FOR THE INSURANCE INDUSTRY

Current macro-economic and regulatory conditions create ever-increasing challenges for insurers. Since the new PRIIPs, there are further conditions:

  • Collect and process extensive data sets from different fund providers
  • Process and calculate risk, performance and cost indicators
  • Create and distribute KIDs in accordance with the complex regulations for PRIIPs

The comprehensive, transparent and flexible arep PRIIPs KID solution enables you to continue to focus on your core activities. arep PRIIPs KID takes care of individual PRIIPs requirements and can optionally manage the entire process for you.

CUSTOMER BENEFIT

As a consultant and solution provider, we strive to deliver maximum value to our customers. Our entire system is designed to fulfil your specific requirements in a both transparent and flexible manner and to increase the efficiency of your business processes.

Comprehensive consulting and implementation of the PRIIPs Regulation

  • Ongoing compliance with regulatory requirements and industry standards
  • Concept based on recommendations by authorities and industry associations (e.g. GDV (German Insurance Association), BVI (German Investment Funds Association), EFAMA (European Fund and Asset Management Association), ESAs (European Supervisory Authorities), BaFin (German Federal Financial Supervisory Authority) and Insurance Europe).

arep HIGHLIGHT: Our expertise and contribution to the development of the European PRIIPs template guarantees a secure, precise and comprehensive exchange of data. 

Simple and straightforward implementation

  • Always up to date with the latest technical and industry-specific standards
  • Maximum data security: Data visible for defined users only
  • Multi-tenancy: Centralised data management for multiple countries and investment companies

arep HIGHLIGHT: Our ready-to-use Software-as-a-Service solution requires no additional IT.

Easy-to-use and secure end-to-end solution

  • Fully transparent monitoring and control system for your entire PRIIPs KID workflow – from collecting fund data, calculating all relevant indicators and creating KIDs to distributing documents to your sales offices and customers
  • Proven and tested dashboard with a traffic light rating system to inform you of the status of each individual process
  • Automated alerts for actions required, e.g. modification of a KID
  • Customer-specific web pages to select investment options and generate respective KIDs as per Article 10a (KID for each underlying investment option) and Article 10b (KID describing the PRIIP)

arep HIGHLIGHT: Customers can choose between a custom solution made up of selected modular components and the full-service model. 

SOLUTION OVERVIEW

  • Data exchange using the European PRIIPs Template (EPT / CEPT)
  • Validation of data via multi-level test procedure
  • Data allocation to individual insurance products
  • Ongoing monitoring of results, alerts when immediate action is required
  • Conversion of delivered fund values based to the recommended holding periods for your products
  • Determination of indicators, even when fund data is not available
  • Calculation of SRI, performance and cost scenarios
  • Individualized design of the KID layouts incl. boilerplates and variables
  • Production of all KIDs in advance or on the fly during consulting

AUTOMATE THE GENERATION OF YOUR UCITS KIIDS WITH THE AREP SOLUTION

Through the use of our module adapted to your corporate identity, and generation of key investor information documents (KIID), banks and fund managers can now easily implement the legal requirements of the UCITS IV (2009/65/EG) guidelines or the German Investor Protection Reinforcement Act.
arep KIIDs for UCITs is already successfully being applied in banks, investment management companies and other financial institutions, and can be deployed in your company within a few weeks

Advantages include

  • Reduction in process time required for generation of essential investor information and fund portraits (reference data, asset allocation, key data).
  • Automated calculation of Synthetic Risk Reward Indicator (SRRI) in compliance with the CESR/10-673 Specification, as well as other performance and risk indicators, such as the Sharpe-Ratio, upon request.
  • Project responsibility for data integration, calculation, publication and distribution is assumed by acarda.
  • Cost-efficient ASP solution.

A FLEXIBLE AND MODULAR SOLUTION FOR YOUR UCITS KIIDS & CUSTOMER REPORTING

The arep KIIDs application for UCITS is based on the proven and license-cost free products Pentaho (data management) and BIRT (report and layout design).
Production via ASP (application service providing), delivery of market data and benchmarks, as well as distribution of factsheets and KIIDs can optionally be offered as outsourcing services.
Through a maintenance contract, continued development, customisation and maintenance are ensured. arep KIIDs for UCITS has already been successfully applied by clients in Germany and Luxembourg.

IMPLEMENTATION FOR YOUR UCITS KIIDS & CUSTOMER REPORTING

  • Interface to different data sources, including: fund accounting, securities settlement or reference and market data management systems.
  • Process-oriented calculation of the performance indicators (such as SRRI) and generation of the KIIDs and factsheets. In addition, further product information sheets, or client, securities and individual funds factsheets based on templates are factored into the process.
  • A range of possible output formats (e.g. PDF, HTML, XML, etc.) generated via the license cost-free open source reporting software BIRT.
  • Integration of internal, multilingual texts from sales, marketing and compliance.
  • Data transformation used for your internet presence and other systems.
  • Possibility of adaptation to alternative reporting systems, such as Business Objects.
  • Generation of multilingual KIIDs, factsheets and customer-specific reports as well as interfaces using the reporting software BIRT (optional use of other report software).
  • Our experience from previous deployments permits to reduce implementation time.

THE APPLICATION AS SOFTWARE AS A SAAS AND/OR MANAGED SERVICE

Software as a Service

Should you wish, the application can be provided to you as SaaS through a highly secured, Tier IV certified computer centre.

The implementation of your own IT infrastructure, with corresponding initial investments, is no longer necessary. In addition, by refraining from using your own systems you avoid increasing the complexity of your IT infrastructure.

This will allow you to concentrate more on your key competences, using your IT skills and resources in a needs-oriented way.

At acarda, we take care of operations as well as providing support services. Secure and easy access to the application is possible via your web-browser.

Business Service / Managed Service

We also offer different reportings as a business service. Under this option our experts will perform all tasks required for your reportings on your behalf.

Service Level Agreement

The specific type and volume of the software as a service or business service will be selected according to your requirements.

You will only pay for the services used according to contractually agreed service level agreements (SLA).

QUOTES

1) Stefan Andresen, Ursula Gerold: Key information document: PRIIPs Regulation – new, EU-wide standard for production information for consumers, Frankfurt am Main, BaFin, 01.09.2015
2) EBA, EIOPA, and ESMA: Technical Discussion Paper – Risk, Performance Scenarios and Cost Disclosures In Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs), JC DP 2015 01, 23.06.2015
3) EBA, EIOPA, and ESMA: Joint Consultation Paper – PRIIPs Key Information Documents – Draft regulatory technical standards, JC 2015 073, 11.11.2015
4) Stefan Andresen, Ursula Gerold: Key information document: PRIIPs Regulation – new, EU-wide standard for production information for consumers, Frankfurt am Main, BaFin, 01.09.2015