More generally, uncertainty as to what the regulatory environment looks like following Brexit remains and affects many Luxembourg AIFs currently managed by authorised UK-based AIFMs, and current fundraisings of Luxembourg funds. In many cases, it requires sponsors to adjust existing offering documents to ensure that securities in funds were marketed to well informed investors qualifying as professional clients for the purposes of the AIFM Directive. It applies to sales of both newly created investments and existing investments. The PRIIPs Regulation provides a clear definition of retail investor, which broadly comprises EU individual and small companies (unless they can be defined as a professional investor). The KID must comply with certain criteria (size and language of the document), and be provided before the sale, to give the investor enough time to make an informed decision. Well-informed investors of a SIF, SICAR or RAIF may fall within that category. The PRIIPs Regulation introduced the obligation for any persons who manufacture a PRIIP (including, among others, funds, carry and co-invest vehicles) to provide EU retail investors with a key information document (KID). Its scope is broad, as PRIIPs are defined as investments where, regardless of the legal form, the amount repayable to the retail investor is subject to fluctuations due to exposure to reference values or to the performance of one or more assets which are not directly purchased by the retail investor. On 1 January 2018, the PRIIPs Regulation ( (EU) 1286/2014) entered into force.
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