ERM Glossary: Packaged retail investment product (PRIP)

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The term ‘packaged retail investment product’ (PRIP) has been introduced by the EU to refer to financial products generally sold to the retail market that offer exposure to underlying financial assets, but in packaged forms which modify that exposure compared with direct holdings. They are typically 'manufactured' meaning that they combine different assets into a single proposition, or include some element of financial engineering. Examples include investment funds such as those governed by the Undertakings for Collective Investment in Transferrable Securities (UCITS) directive, other non-harmonised retail investment funds, (retail) structured products (which can take many legal forms), and unit-linked insurance contracts.


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