A widely-used term in financial circles, a Key Information Document (Kid) is a short, plainly-worded document designed to provide retail investors with answers concerning the features, risks, and costs of investment products.

According to the European Commission, the Kid is “designed for the retail investor rather than the professional. They will help the retail investor make a more informed decision on whether an investment is right for them.”

The Kid was introduced as part of the European Union’s regulation on Packaged retail investment and insurance-based products (Pripps), which became applicable in 2018. The Pripps regulation aimed to enhance transparency and comparability of information for retail investors.

The Kid is presented in a standardised format and includes the following elements:

1.     Product information

2.     Risk and reward profile

3.     Performance scenarios

4.     Costs and charges

5.     Sustainability considerations

6.     Additional information

7.     Other relevant details

Kid vs. Kiid

The Kiid, or Key Investor Information Document, is a precursor to the Kid. It was primarily used for Undertakings for Collective Investments in Transferable Securities (Ucits), a type of investment fund that can be sold to retail investors in the EU.

Like the Kid, a Kiid provides investors with key information about a fund, including its objectives, past performance, risk profile and costs. The Kiid was introduced to meet the requirements of the Ucits IV Directive. The Kiid has largely been replaced by the Kid under the Priips regulation and applies to a wider range of investment products. 

The EU has proposed further amendments to the Priips regulation that will require , including a new dashboard summarising the document’s contents and an additional section on the product’s sustainability credentials will be added.