The Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs)
– Lloyds Bank Corporate Markets plc
The aim of the PRIIPs Regulation is to encourage efficient markets by helping investors to better understand and compare the key features, risk, rewards and costs of different packaged retail and insurance-based investment products (PRIIPs), through access to a short and consumer-friendly Key Information Document (KID).
As a manufacturer and seller of a PRIIP we are required to prepare a KID for each PRIIP that we produce and to publish a copy on our website.
Who is a retail investor for the purpose of the PRIIPs Regulation?
The PRIIPS regulation applies to products sold to Retail clients (as defined in “MiFID II”). Under MiFID II, a retail client is any client that is not a professional client or an eligible counterparty (a client who possesses the experience, knowledge and expertise to make its own investment decisions and properly assess the risks that it incurs in accordance with criteria set out in MiFID II – the precise definition is set out in an Annex to MiFID II).
A “retail client” also includes any customer of an insurance undertaking or re-insurance undertaking within the meaning of the EU Insurance Mediation Directive who would not qualify as a professional client under MiFID II.
For these purposes, a Retail Investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of the revised Markets in Financial Instruments Directive 2014/65/EU, (“MiFID II”); or (ii) a customer within the meaning of Directive 2002/92/EC (as amended the "Insurance Mediation Directive"), where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii) not a qualified investor as defined in Directive 2003/71/EC (as amended, the "Prospectus Directive"), in each case as the relevant Directive forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended) (EUWA).
Following UK exit from EU – separate onshored version of PRIIPs in UK applies to retail investors in UK and EU version applies to investors in EU. We have a very limited product offering to EU Retail Clients. EU versions of relevant KIDs can be found specified with “EU Version”.
PRIIPs are:
- investment products where the amounts repayable to the investor are subject to fluctuations from exposure to (i) reference values or to (ii) the performance of assets not directly purchased by the retail investor
- insurance-based investment products where the maturity or surrender value is exposed to market fluctuations.
Lloyds Bank Corporate Markets plc do not offer insurance based investment products to its customers.
Current PRIIPs may include FX, Interest Rate and Commodity derivatives, amongst others, when sold to retail categorised clients.
Products obtained through Lloyds Bank Corporate Markets plc that are not PRIIPs include, amongst others:
- deposits (other than structured deposits – a combination of a deposit and investment product)
- FX Spot transactions; and
- lending products.
UK PRIIPS
Following review by the FCA, the rules and requirements on UK PRIIPS change by the 31st December 2022. Amongst other, the requirements and methodologies for presentation of performance scenarios in the KID has been amended with a requirement for narrative information on performance provided. You will be notified of any changes to the KIDS through this Website.
Key Information Documents (KIDs) required under PRIIPs
The KID is a stand-alone, standardised document prepared for each investment and whose form and content is governed by mandatory rules set out in the PRIIPs Regulation and its underlying rules & guidance. They are generic disclosures for each different type of PRIIP providing consumer-friendly, consistent and clear information to help Retail Investors to better understand and compare the key features, risk, rewards and costs of different PRIIPs provided by those selling them. A KID can be up to a maximum of 3 sides of A4-sized paper. Each KID contains generic disclosures for each different type of PRIIP, which is presented in a pre-determined sequence of sections. The sections are:
- What is this product?
- What are the risks and what could I get in return?
- What happens if Lloyds Bank is unable to pay out?
- What are the costs?
- How long should I hold it and can I take money out early?
- How can I complain?
- Other relevant information
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Average Rate Forward (PDF, 356 KB)
Bonus Forward Extra (PDF, 383 KB)
Boosted Forward (PDF, 386 KB)
Cylinder Option (PDF, 362 KB)
Cylinder Plus (PDF, 379 KB)
Enhanced Forward (PDF, 377 KB)
European Currency Option (PDF, 352 KB)
Extendible Forward (PDF, 387 KB)
Extendible Forward Extra (PDF, 404 KB)
Extendible Ratio Forward (PDF, 388 KB)
Extendible Ratio Forward Extra (PDF, 404 KB)
Extendible Participating Forward (PDF, 388 KB)
Forward Extra< (PDF, 365 KB)
Forward Extra Plus (PDF, 386 KB)
Knock Out Forward (PDF, 374 KB)
Knock Out Forward Extra (PDF, 383 KB)
Non Deliverable Forward (PDF, 359 KB)
Participating Forward (PDF, 357 KB)
Pivot Target Accrual Forward (PDF, 374 KB)
Ratio Bonus Forward Extra (PDF, 386 KB)
Ratio Cylinder (PDF, 366 KB)
Ratio Forward (PDF, 357 KB)
Ratio Forward Extra (PDF, 369 KB)
Ratio Knock Out Forward (PDF, 377 KB)
Ratio Knock Out Forward Extra (PDF, 383 KB)
Synthetic Forward (PDF, 356 KB)
TARF (PDF, 376 KB) -
Callable Interest Rate Swap - Bermudan (PDF, 374 KB)
Callable Interest Rate Swap - European (PDF, 374 KB)
Cross Currency Swap (PDF, 376 KB)
Interest Rate Cap (PDF, 352 KB)
Interest Rate Collar (PDF, 3632 KB)
Interest Rate Swap (PDF, 358 KB)
Interest Rate Swaption (PDF, 354 KB)
Interest Rate Floor (PDF, 352 KB) -
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