Doing it for the Kid

If someone could create a short form document of three or four pages that could alert retail investors to the proceeds and pitfalls of a structured product, then regulators could relax, investors could do their own simple risk-reward analysis and product manufacturers could learn to deal in some line of plain English. Thanks to the European Union, all these things may be possible. Richard Jory puts the questions on the EU’s Key Information Document to Tim Hailes, Richard Metcalfe, Adriaan Goosen, Andrew Sulston and Simon Bladon

What should be the product scope and boundaries for the European Union’s packaged retail investment products (Prips) regime, and what should be the Key Information Document (Kid) purpose/mission statement?

Tim Hailes, chairman of the Joint Associations Committee (JAC) and associate general counsel for structured products at JP Morgan:

The European Union’s Kid is about retail investment products and yet it’s unclear what the ambit of this legislation will be. The European Commission has stated it