For those of you in the asset management industry, you will be well aware of the new European legislation surrounding Packaged Retail and Insurance-based Investment Products (otherwise known as PRIIPs), which will change the way information is provided to investors at the point of sale.
As part of this initiative, the Financial Conduct Authority (FCA) requested that all asset management companies ensure communication is always clear and never misleading. It needs to be clear not just for the regulator, but most importantly for the investors themselves.
Clarity is, of course, important, but so too is consistency. Asset managers need to ensure that new PRIIPs and KIIDs are consistent with their fund prospectus, and that all following updates remain equally consistent. This consistency has to filter through to all marketing literature, and platforms where these documents will be published, such as company and distributor websites.
It’s going to be a fast-paced year for asset managers as they prepare for the new legislation, given the deadline of January 2018 to implement PRIIPs. In line with this, there is going to be a great need for data and content to be produced, checked (sometimes translated) and published. Asset managers could at this stage take advantage of the overlap of the regulation by reusing content relative to both regulatory requirements to save costs.
So, with all of this new regulation, and consistent content requirements, how can asset managers ensure their content is clear and consistent? What if investors are non-English language speakers?
Your language service provider should be able to help you through this challenging legislation, not only in terms of your linguistic requirements, but also with the organisational and technical challenges involved at each stage of the project.
It’s not just the translation element itself where your language service provider can help, but also with the writing, editing and releasing of your KIIDs material.
Preparing your KIIDs – KIIDs can be written using your existing prospectuses, and should be done so as to maintain consistency across terminology.
Translation of KIIDs – As per the legislation, KIIDs should be made available in at least one of the official languages used in each part of an EEA member state where products are distributed. Experienced, qualified & vetted linguists need to be carefully selected to meet the specific demands of the asset management industry, and the new legislation.
Streamlining the process – How do you currently produce your KIIDs? Do you have KIIDs software, or do you use a CMS? We can ensure the transfer of your documents is automated and integrated by using our SmartMATE Connectivity technology suite.
Handling KIIDs updates – Translation memory tools store previously translated material, ensuring consistency across all documents and saving costs and time.
Maintaining consistency – Consistency in terminology and style has to filter through to all marketing literature, and all platforms where these documents will be published, such as company and distributor websites.
Publishing – With a KIID required per share class the number of KIIDs/PRIIPs could run to thousands. You need a tool which can connect to any system, 3rd party or proprietary solution at the click of a button, and record all review stages for compliance. If you do not need thousands of KIIDs, then manual production can be made easy by design and typesetting studios.
By partnering with us, you can ensure your KIIDs and PRIIPs are fit for purpose, clear and consistent, by keeping up to date with regulatory terminology, well into the future.
What’s more, as part of Capita plc, our sister company Capita Asset Services is on hand to provide a range of solutions and services that could help during this process.