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Standardised Key Information Documents for Insurance-based Investment Products increase transparency and comparability of investment products across sectoral boundaries.

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The Austrian Financial Market Authority (FMA) reminds consumers and investors that insurance undertakings as the manufacturer of an insurance-based investment product (e.g. classical life insurance, fund-based and index-based life insurance) have been required under law[1] to make a product-specific standardised key information document (a KID) available on their website, and to do so prior to this insurance product being offered to retail investors. Such key information documents are intended to make it easier for retail investors to understand the characteristic features of the respective investment products, and to also enable them to be able to make a proper comparison with different other products – even beyond sectoral boundaries. These standardised key information documents must in particular present the overall risk indicators (with a score of 1 to 7 depending on the level of risk) as well as disclosing one-off and ongoing charges, the total costs and their impact on returned and realistic scenarios in relation to expected returns (so-called performance scenarios).

In a thematic review about insurance-based investment products the FMA determined that a corresponding key information document (KID) has been made available for all of the insurance-based investment products available for sale on the websites of Austrian insurance undertakings. By way of a best practice the FMA has ensured that all providers, when presenting and advertising the product on their website either link directly to the KID or refer clearly to a download area, from where the KID can be downloaded. Furthermore, it was also ensured that, as prescribed in the law, that all advertising materials containing specific information about insurance-based investment products must contain an unambiguous and clearly noticeable reference to the key information document informing how and where the KID is available, including the manufacturer’s website address.

Journalists may address further enquiries to:

Klaus Grubelnik (FMA Media Spokesperson)

+43/(0)1/24959-6006, or +43/(0)676/882 49 516

[1]Regulation (EU) No. 1286/2014 on key information documents for packaged retail and insurance-based investment products (the PRIIPs Regulation) and Delegated Regulation (EU) 2017/653 (the PRIIPs Delegated Regulation) as well as the Federal Act implementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) (PRIIP-Vollzugsgesetz).