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).

The PRIIPs Regulation only applies to products that are defined as PRIIPs and only if the PRIIP is made available to retail investors. 

Who is a retail investor for the purpose of the PRIIPs Regulation? 

A retail investor is a “retail client” as defined in “MiFID II”. Under MiFID II, a retail client is any client that is not a professional client (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. 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 and at present the substance of both regulations are the same.

 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.

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.

There are ongoing reviews by the FCA on the UK PRIIPs rules and current requirements may be subject to change. We will notify you of any changes to the above by updating this webpage.