A Guernsey-based actuarial technology company’s been working with asset managers to take the pain out of new rules surrounding Key Information Documents, or KID.
Dorey Financial Modelling has been assisting with calculations needed to comply with the EU’s new Packaged Retail and Insurance-based Investment Products (PRIIPs) regulations.
It means that asset managers now need to adhere to new technical standards for the KID include summary risk indicators, projected returns and disclosure of costs for investment products.
Those who don’t comply face significant fines or a ban on marketing the PRIIP.
Dorey Financial Modelling managing director, Martyn Dorey, said: “Product categorisation, the range of financial outcomes and costs can be complicated, and factors such as currency fluctuations, private equity, and fund wind-up dates come into play as well. All of this needs to be adequately explored with the product manufacturer and their legal teams, so we pay close attention and listen to the product manufacturers’ forward-looking views.”
The administration work to prepare KIDs is often outsourced to fund administration service providers.
Haley Camp, Chair of Guernsey Investment Fund Association’s Technical Committee, said: “Guernsey has been in the investment funds business for over 50 years and in that time has built a considerable depth and breadth of expertise, ensuring we are more than capable of coping with whatever comes our way.”
“The work currently carried out on PRIIPs by local firms is evidence of our adaptability and helps explain why global fund managers continue to find Guernsey such an attractive home for their products.”
Dorey Financial Modelling is working with a number of investment administrators to provide the underlying calculations which feature in the KID and has worked with international administrators and managers based in Canada, the US, Europe and South Africa.
