Central Bank of Iceland Rules No. 510/2023 on the Preparation and Distribution of Key Information Documents for Retail Investors

CENTRAL BANK OF ICELAND

14 July 2023
Ref.: 2212133

Circular no.: 33/2023 to parties offering packaged and insurance-based investment products and/or supplementary insurance coverage

Subject: Central Bank of Iceland Rules no. 510/2023 on the preparation and distribution of key information documents for retail investors.

With this circular, the Financial Supervision of the Central Bank of Iceland draws the attention of recipients to the Central Bank's Rules no. 510/2023, on the preparation and distribution of key information documents for retail investors. The Rules, which implement the PRIIPs subclasses into Icelandic law, entered into force on 26 May this year. They apply to manufacturers and parties that provide advice on or sell packaged and insurance-based investment products for retail investors and parties that offer supplementary insurance coverage pursuant to Chapter II of Act no. 129/1997, on mandatory insurance of pension rights and the activities of pension funds, cf. the 3rd–5th paragraphs of Article 8 of that Act. The Rules are issued with the support of the 2nd paragraph of Article 17 of Act no. 55/2021 on key information documents for certain investment products for retail investors and repeal the older Rules no. 145/2022.

Particular attention is drawn to the fact that, unlike the older Rules, the Rules now also apply to management companies of securities funds pursuant to Act no. 116/2021, managers that market specialised funds to retail investors pursuant to Chapter X of Act no. 45/2020 and parties that provide advice on or sell shares and/or unit certificates of a securities fund or a specialised fund for retail investors pursuant to the same chapter, where the temporary exemption for these parties from the scope of Act no. 55/2021 expired on 31 December 2022, cf. the 2nd paragraph of Article 18 of the same Act. The aforementioned parties must therefore now prepare and distribute key information documents to retail investors on the basis of Act no. 55/2021, but not on the basis of Acts no. 116/2021 and no. 45/2020 as before. With the new Rules, Regulation (EU) 2021/2268 is implemented, which amends Implementing Regulation (EU) 2017/653, in particular with respect to the implementation of the requirements that the aforementioned parties must now take into account when preparing and distributing key information documents to retail investors.

Key information documents are intended to enable retail investors to understand and compare the main characteristics of packaged and insurance-based investment products and the associated risks. The aforementioned Regulations (EU) lay down technical regulatory standards, inter alia with regard to the presentation, content, review and revision of the aforementioned key information documents and requirements to provide such documents.

Kalkofnsvegur 1 101 Reykjavík www.sedlabanki.is 569 9600 sedlabanki@sedlabanki.is

CENTRAL BANK OF ICELAND

With reference to the above, the Financial Supervision directs the recipients of the circular to familiarise themselves with Rules no. 510/2023 and to take them into account from now on when preparing and distributing key information documents for retail investors on the basis of Act no. 55/2021.

Yours faithfully,
CENTRAL BANK OF ICELAND

Linda Kolbrún Björgvinsdóttir managing director conduct supervision

Inga Dröfn Benediktsdóttir head of department conduct supervision