PRIIPs and Key Information Documents

Some investments are simple to understand. For example, buying shares in a company usually means you own a small part of that company.

Other investments are more complicated. Their value may depend on several things, such as a fund, an index, a group of investments, currency movements, or a specialist investment strategy.

These types of products are often called PRIIPs. PRIIPs stands for Packaged Retail and Insurance-based Investment Products.

A PRIIP is an investment product that is packaged in a certain way. This means the return you receive may depend on how other investments, markets or strategies perform, rather than directly owning the underlying asset.

Examples can include:

• some exchange-traded products;
• some funds;
• some investment trusts;
• some structured products;
• some products that use derivatives;
• some overseas ETFs.

Not all PRIIPs are bad. Some may be suitable for experienced investors. However, they can be harder to understand than ordinary shares or simple funds. Because of this, there are specific rules around how PRIIPs can be made available to retail clients.

A Key Information Document, often called a KID, is a short document that explains the main features and risks of a PRIIP.

A KID usually explains:

• what the product is;
• how it works;
• what the main risks are;
• what it may cost;
• how long you may need to hold it;
• whether you could lose money.

Invinitive Financial UK Ltd is an execution-only platform. We do not give investment advice and we do not tell clients what to buy, sell or hold. However, we still have to follow rules about which investments can be made available on our platform.

We may restrict an investment if:

• there is no required Key Information Document;
• the product is not intended for retail clients;
• the product is only for professional or institutional investors;
• the investment is too complex for retail distribution;
• the investment is not permitted under our investment rules;
• the investment creates tax, custody or regulatory issues;
• we cannot safely hold the investment on our platform.

This can apply to some overseas ETFs, specialist funds, structured products, exchange-traded products and other complex investments.

US ETFs are a common example of this restriction in practice.

Many US-listed ETFs do not have the required UK disclosure documents for retail clients. Because of this, they are usually not available to UK retail clients, even though many are large, well-known and widely traded in the United States.

If the right UK disclosure document is not available, we may not be able to make the investment available to retail clients. Some US ETFs may be available to Professional Clients, subject to our checks. Retail clients may need to use UK or European-listed alternatives instead.

Some investments are only available to Professional Clients.

Being a Professional Client is a regulatory status — it is not just a label or a preference. To be treated as a Professional Client, you must meet certain regulatory criteria. Invinitive must also review and approve your request.

Professional Clients may have access to a wider range of investments. However, they may also lose some protections that retail clients receive. For this reason, you should not ask to be treated as a Professional Client simply to access one investment.

Some PRIIPs may also be classed as complex instruments. A complex instrument is an investment that may be harder to understand because of how it works, how it is priced, or the risks involved.

For example, it may:

• use borrowing or leverage;
• use derivatives;
• have unusual or amplified risks;
• be difficult to sell quickly;
• be difficult to value;
• have returns that are hard to predict.

Before allowing access to some complex instruments, Invinitive may ask you to complete an appropriateness assessment. This is not investment advice — it is a check to see whether you have enough knowledge and experience to understand the risks of the investment.

The UK is changing the rules for investment disclosure documents. The current PRIIPs rules are being replaced by a new UK regime called Consumer Composite Investments (CCIs).

This change is being phased in between 2026 and 2027. Invinitive will continue to follow the applicable rules as they evolve.