“When it comes to the PRIIPs implementation, the asset management, bank and insurance industries have different needs and focus, but they depend on each other to be ready on time. Asset managers are aware that they will have to provide certain information and data sets, but a lot of work remains to be done before they will be ready to do so,” states Lou Kiesch, Partner at Deloitte Luxembourg.

Behind schedule

90 percent of survey participants indicated that they are considering outsourcing the PRIIPs reporting. This could be linked to the fact that only around 20 percent of respondents express comfort that their counterparts in the banking, asset management and insurance sectors will be able to provide the required data on time. Moreover, only one in ten asset managers report that they have been contacted by insurance companies to discuss the upcoming data exchange.  

“Some insurance companies seek to reconstruct product KIDs from scratch and will request raw data from their asset managers, while a majority of insurance companies is likely to expect calculated data or even the complete KID to simplify the process. Either way, insurance companies will need to rely on the asset managers to provide accurate data in a timely manner,” explains Thierry Flamand, Partner and Insurance Leader at Deloitte Luxembourg.

Different expectations

The survey shows that asset managers are preferring to provide a combination of raw and calculated data with the majority of the banks intending to provide raw data only. This is in stark contrast to insurance companies’ expressed preference for receiving the full KID from their counterparts.

The findings of the PRIIPs readiness survey were revealed at Deloitte’s PRIIPs challenge conference, which gathered 120 industry professionals and representations from the main industry associations to a discussion forum on 27 May.