9. For whom is the KID document intended for?
The KID shall be made available to retail investors or the person mandated in writing for making investment decisions on their behalf, as defined in that mandate.
Professional investors are entities listed in the Securities Code, such as:
- Credit institutions;
- Investment companies;
- Insurance companies;
- Collective investment institutions and their management companies;
- Pension funds and their management companies.
Retail investors are those who do not meet the requirements to be classified as professional investors and are commonly referred to as retail investors.
10. By whom should the KID be made available?
The KID should be made available to the retail investor by who provided consultancy whenever the investment proposal involves a PRIIP or directly by the entity that markets it (whether it is a bank or another financial institution).
11. When should the KID be made available?
The KID should be made available, as a rule, before the retail investor becomes bound by the subscription or acquisition of the PRIIP (before signing the subscription or acquisition document or, in online sales, before clicking on the sign "I accept", "Accept" or similar).
Disclosure of the KID should be made in advance to allow the retail investor to review it prior to being bound by the subscription or acquisition of the PRIIP.
But there are special cases where it is permissible for the KID to be made available after the time of subscription or acquisition of the PRIIP, and those where the following conditions occur cumulatively:
a) the retail
investor has the initiative to contact the retailer by means of distance
communication and to complete the subscription or acquisition of the product
through the same kind;
(b) it is not
possible to provide the KID prior to the commitment (this is the case, for
example, by telephone sale only);
(c) the entity
obliged to make the KID available has informed the retail investor prior to the
subscription or acquisition of the impossibility of providing it prior to the
subscription or acquisition and has clearly stated that the retail investor may
postpone the transaction to receive and read the KID before completing the transaction;
d) upon receipt
of the information under the preceding paragraphs, the retail investor chooses
to receive the KID after the transaction has been completed but without undue
delay rather than postponing the transaction until receipt of the KID.
In the case of
successive subscriptions or acquisitions of the same PRIIP, in accordance with
instructions given by the retail investor to the trader prior to the first
subscription or acquisition, the obligation to make the KID available covers
only the first subscription or acquisition (as well as the first subscription
or acquisition after KID’s revision, when it occurs).
12. How should the KID be made available?
The KID must be made available free of charge, in one of the following mediums:
a) on paper - this is the rule regime in the subscription or in-person acquisition of PRIIPs and in the provision of consulting services related to PRIIPs, and the use of another support is only possible if the retail investor has indicated as such;
(b) on another durable medium - if it is suitable for the context of marketing or advisory services and the retail investor, having been placed in a position to choose between paper and another medium, has chosen the other and choice can be proved;
c) through a website - if this medium is suitable for the context of the subscription or acquisition or provision of advisory services and the retail investor has been able to choose to receive between paper and the website and this choice can be demonstrated; in this case the retail investor shall also be notified electronically or by other means in writing of the website address and the exact location of its availability on that website, and the KID shall be accessible for download or storage on a durable medium for the period required for consultation by the retail investor.
The trader or advisory service provider shall inform the retail investor of his/her right to request (and therefore, to receive) a free paper copy of the KID, at all times in case the KID is made available by one of the means set out in subparagraphs (b) and (c) above.
13. Can the KID change during the life of the product?
Yes. In the case of PRIIPs that are still available for subscription or purchase, their producers review the information contained in the KID at least on a yearly basis, noting in particular:
producer revises and updates the KID whenever a re-examination leads to the
conclusion that changes should be made.
14. How do
I know whether my KID has been changed?
law, the PRIIP producer publishes the revised KID on its website.
pursuant to CMVM Regulation No. 8/2018, the PRIIP trader communicates to each
customer any significant changes that are made to the KID following their
revision. This communication shall identify and specify the changes concerned,
refer to the location and mode of consultation of the revised KID and, where
applicable, refer to the information concerning the rights that clients have
under legal and contractual terms due to the changes that led to the revision of
the KID. But it does not necessarily imply sending the revised KID to the
15. If I
wish to subscribe or acquire a PRIIP marketed by an entity from another Member
State or third country, I am entitled to a KID?
Regulation applies to producers, traders and entities providing advisory
services to retail investors in the European Union, including third country
entities authorised to carry out these activities in Union territory.
Consequently, a retail
investor wishing to subscribe to or acquire a PRIIP from an entity in another
Member State or an authorised third country entity within the European Union is
entitled to have the KID made available to him/her prior to its contracting,
and the same in the context of the provision of PRIIP advisory services on
European Union territory.
If a PRIIP is
only offered to investors outside the European Union, it will not be necessary
to comply with the requirements of the PRIIPs Regulation. In this case, there
is no obligation to make the PRIIP’s KID available.
16. May one
subscribe or purchase a PRIIP based on advertising alone?
No, PRIIPs advertising
or other commercial promotion elements is insufficient to subscribe or purchase
a PRIIP, as it is understood that they do not contain all the necessary
information for the retail investor to make a sufficiently informed decision as
to the nature of the product and its characteristics, including the inherent risks.
Hence the availability of the KID is mandatory. In addition, the PRIIP trade
promotion elements must make explicit the existence of a KID and provide
information on where and how it can be obtained, including the PRIIP producer's
elements cannot contain information that contradicts the KID’s information or
that in any way diminishes the importance of the KID.
are the rights of the investor in case of non-compliance with the PRIIPs?
In the event of
non-compliance with the PRIIP regime obligations, the retail investor may lodge
a complaint with the producer, the trader and the consultancy service provider.
They have a duty to establish effective means for complaints by retail
investors to ensure a concrete, timely and appropriate response to the
complaint. They should also have effective remedies in cases of cross-border
disputes, particularly if the PRIIP producer is located in another EU Member
State or in a third country.
supervisory authorities (CMVM, ASF and Banco de Portugal, depending on the
specific type of PRIIP concerned) are also entitled to receive complaints from retail
investors in the context of supervising production, marketing and consultancy service
activities concerning PRIIPs.
18. How can I submit a complaint under the PRIIP regime and to whom should I address the complaint?
Retail investors may file complaints through the complaint books compulsorily made available by financial institutions to clients, pursuant to Decree-Law No. 156/2005 of 15 September.
In addition, they may file complaints directly with the competent supervisory authorities, i.e. the CMVM, ASF or Banco de Portugal. The choice of the entity to file a complaint with, will depend on the type of PRIIP concerned:
- When the production, marketing and provision of financial instrument (PRIP) advisory services is concerned, then the complaint should be filed with the CMVM.
- If the production and marketing of insurance-based investment products (IBIP, including unit-linked) is concerned, and the provision of related advisory services, retail investors may complain directly to the Insurance and Pension Funds Supervisory Authority, preferably through their own form available on the Consumer Portal.
- But if it concerns the production and marketing of structured deposits and the provision of advisory services on this type of product, then the competent authority is Banco de Portugal. Retail investors may submit a complaint directly to Banco de Portugal, preferably through their own form available on the Bank Customer Portal.
I complain to the Portuguese authorities even though the non-compliance was
committed by an entity from another country?
Yes. Also, in
these cases, although the non-complainant comes from another EU Member State or
from a third country, if the PRIIP is marketed in Portuguese territory, the
Portuguese supervisory authorities may receive and deal with their complaints.
20. In the event of non-compliance with the PRIIP regime, may national
authorities impose sanctions?
Yes. Failure to
comply with legal obligations regarding the preparation, availability and revision
of the KID may be punishable with fines and ancillary sanctions under the
applicable national legislation (Annex II to Law No. 35/2018 of 20 July),
applicable to producers, traders and consultancy providers responsible for
In addition to
sanctions, the supervisory authorities (CMVM, ASF and Banco de Portugal,
depending on the specific type of the PRIIP concerned) may also exercise their
supervisory powers by determining the remedy of non-compliant practices and, at
the limit, the prohibition or the suspension of the PRIIP’s marketing, as well
as a ban on the availability of a KID, requiring the drawing up of a new
21. In the event of non-compliance with the PRIIP regime
by another Member State or a third country, may the national authorities impose
Yes. Failure to
comply with the obligations under the PRIIPs regime by entities of another
Member State or third country may give rise to the imposition of fines and
ancillary sanctions and may also justify the exercise of supervisory powers by
the national authorities, provided that the PRIIPs are marketed in Portuguese
22. How may non-compliance be reported to the national authorities?
non-compliance is suspected, and in addition to the fact that a complaint may
be filed, the national supervisory authorities make available on their websites
open channels for reporting actual or potential infringements of the PRIIPs
regime, guaranteeing the confidentiality and enforcement of the legal regime
for the protection of the personal data of the complainant and the suspected