Key Information Document (KID)
As of 1 January 2023, the Key Investor Information Document (KIID) for UCITS and certain investment firms has been replaced by the Key Information Document (KID). The KID provides clear, standardised information about an investment product, including its risks, expected returns, costs, and other key characteristics. This change affects how fund-related information is presented and helps investors compare investment products more easily and transparently.
What does the KID entail?
The KID is a mandatory disclosure document under European law that must be provided to retail investors before trading packaged investment products.
It applies to:
- Funds
- Structured products
- Derivatives
- Insurance-based investment products
The KID aims to:
- Improve investor protection
- Ensure clear and comparable product information across providers
- Provide details on costs, risks, performance scenarios, and investment objectives
Since 1 January 2018, most products such as ETFs, structured notes, and derivatives already required a KID. As of 1 January 2023, this requirement was extended to UCITS funds.
What is the PRIIPs Regulation?
The PRIIPs Regulation (Packaged Retail and Insurance-based Investment Products – Regulation EU 1286/2014) creates a framework for providing standardised, investor-friendly information for retail clients across the EU.
Covered products include:
- Structured financial instruments (e.g. certificates, warrants)
- Investment funds (open-ended and closed-ended)
- Derivative instruments (options, futures, CFDs)
- Investment-type insurance products (e.g. unit-linked life insurance)
- Products issued by special purpose vehicles (SPVs)
The focus of the regulation is on ensuring that non-professional investors receive clear, comparable information prior to investing.
While the regulation does not exclusively apply to ETFs, many ETFs fall under its scope.
Why was this regulation created?
The PRIIPs regulation was introduced to:
- Improve transparency in the financial markets
- Enhance investor protection
- Rebuild trust among retail investors after the financial crisis
A key feature of PRIIPs is the standardised format and methodology for calculating and disclosing:
- Risk and return scenarios
- Total cost indicators
- Summary risk indicators (SRI)
These features make it easier for investors to understand and compare investment products across providers and jurisdictions.
The regulation came into force on 31 December 2016, with the obligation to provide KIDs effective from 1 January 2018.
Who has to comply with the regulation?
Any product manufacturer or distributor who offers PRIIPs to retail clients in the EU must:
- Prepare and publish a Key Information Document
- Make the KID available before the transaction is executed
- Ensure the KID is in the official language of the investor’s country
This means that:
- European product issuers must provide KIDs for retail distribution
- Non-European issuers often choose not to qualify as product manufacturers under EU law, as this would require compliance with extensive legal obligations
As a result, many non-EU ETFs, especially from the U.S., Canada, Hong Kong, Mexico, and Australia, are not available for retail trading in the EU due to the absence of a compliant KID.
Practical implications
As a retail investor, you are not permitted to trade ETFs or other products that do not have a valid KID under the PRIIPs Regulation.
This includes ETFs domiciled in:
- The United States
- Canada
- Mexico
- Hong Kong
- Australia
These products can only be traded by professional clients under MiFID II.
Even if you hold a corporate account, you may still be classified as a retail client unless you meet the strict criteria for professional client status, which include:
- Sufficient trading volume
- Large portfolio size
- Demonstrated experience in financial markets
FAQ
What should I do as an investor?
You do not need to take any specific action.
LYNX makes the required KID documents available within the trading platforms so that you can access them easily when evaluating an investment.
Where can I find the Key Information Document (KID)?
- LYNX+
Login in to the LYNX+ platform with your user data. After entering your username and password, you will need to use your two-factor authentication. After selecting the trading instrument, you will find a link to the Key Information Document (KID) on the right-hand side.
- TWS
Login in to the TWS platform with your user data. After entering on the TWS platform, you can access the related KID document by right-clicking on the product ticker, which will open a menu. Click on Financial Instrument Info and then select Details.
- Client Portal
Log in to the Client Portal with your user data. After entering your username and password, you will need to use your two-factor authentication. After login in, you will find where you can use the search function to find related KID documents. Click on Help at the top right, and then select Support Center. Once the Support Center opens, you can choose PRIIPS Kid.
Can I trade US ETFs through LYNX?
No, not unless you are classified as a professional investor.
Retail clients cannot purchase ETFs from countries where the issuer does not publish a KID in accordance with EU regulation. This applies to:
- U.S. ETFs
- Canadian ETFs
- Hong Kong ETFs
- Mexican ETFs
- Australian ETFs
Retail clients may still hold or sell existing positions, but new purchases are restricted.
How to check which products are restricted?
- LYNX+
Log in and select a product. After clicking Send Order, the platform will notify you if the product is restricted, before order submission.
- TWS
For restricted products, the symbol ‘NT’ (Not Tradable) will appear.
Hover your mouse over the name to see a message confirming the restriction.
- LYNX Trading App
On restricted products, a Trade Notice will appear at the bottom of the screen.
Tap this message for more details.