ANNEX III PRESENTATION OF SRI

PRIIP manufacturers shall use the format below for the presentation of the SRI in the key information document. The relevant number shall be highlighted as shown depending on the SRI for the PRIIP.

The narrative explanation after the SRI shall briefly explain the purpose of the SRI and the underlying risks.

Immediately below the SRI, the time frame of the recommended holding period shall be indicated. In addition, a warning shall be included directly below the SRI in the following cases:

1. (a)

   where the risk of the PRIIP is considered to be significantly higher if the holding period is different;

2. (b)

   where a PRIIP is considered to have a materially relevant liquidity risk or to be illiquid, whether this is contractual in nature or not.

As applicable for each PRIIP, the narrative explanation shall include:

1. (a)

   a warning in bold font where:

   1. (i)

      a PRIIP is considered to have currency risk as referred to in Article 3(2)(c) of this Regulation (Element C);

   2. (ii)

      a PRIIP holds a possible obligation to add to the initial investment, (Element D);

2. (b)

   where applicable, an explanation of risks materially relevant to the PRIIP which could not be adequately captured by the SRI (Element E);

3. (c)

   a clarification:

   1. (i)

      that the PRIIP holds a (partial) capital protection against market risk where relevant, including a specification of the percentage of the invested capital that is protected (Element F);

   2. (ii)

      of the specific conditions of the limitations where the (partial) capital protection against market risk is limited (Element G);

   3. (iii)

      that the PRIIP holds no capital protection against market risk, where relevant (Element H);

   4. (iv)

      that the PRIIP holds no capital guarantee against credit risk, where relevant (Element I);

   5. (v)

      of the specific conditions of the limitations where the protection against credit risk is limited (Element J).

For PRIIPs offering a range of options for investment, PRIIP manufacturers shall use the format referred to point 1 of this Annex for the presentation of the SRI, indicating all of the risk classes offered from the lowest risk class to the highest risk class.

For derivative-based PRIIPs1, Elements A, B, and, where relevant, H, shall be included.

For the purposes of the SRI presentation, including point 4 of this Annex, the following narrative explanations shall be used, as appropriate:

1. [Element A] The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.

2. [Element B] We have classified this product as [1/2/3/4/5/6/7] out of 7, which is [1="the lowest"/2="a low"/3="a medium-low"/4="a medium"/5="a medium-high"/6="the second-highest"/7="the highest"] risk class.

3. [In addition, insert a brief explanation of the classification of the product with a maximum of 300 characters in plain language]

4. [An example explanation: This rates the potential losses from future performance at a [1="very low"/2="low"/3="medium-low"/4="medium"/5="medium-high"/6="high"/7="very high"] level, and poor market conditions [1, 2="are very unlikely to"/3="are unlikely to"/4="could"/5="will likely"/6="are very likely to"] impact [our] [the] capacity [of X] to pay you].

5. [[Where applicable:] Element C, in bold] Be aware of currency risk. You will receive payments in a different currency, so the final return you will get depend on the exchange rate between the two currencies. This risk is not considered in the indicator shown above.

6. [[Where applicable:] Element D] In some circumstances you may be required to make further payments to pay for losses. (in bold) The total loss you may incur may significantly exceed the amount invested.

7. [Where applicable:] [Element E] [Other risks materially relevant to the PRIIP not included in the summary risk indicator to be explained with a maximum of 4001 characters]

8. [Where applicable:] [Element F] [You are entitled to receive back at least [insert %] of your capital. Any amount over this, and any additional return, depends on future market performance and is uncertain.]

9. [Where applicable:] [Element G] [However, this protection against future market performance will not apply if you [..]

10. • [Where early exit conditions apply] cash-in before [… years/months/days]]
    • [Where ongoing payments must be made] fail to make your payments in time.
    • [Where other limitations apply: explain these in a maximum of […] characters in plain language.]

11. [Where applicable:] [Element H] [This product does not include any protection from future market performance so you could lose some or all of your investment.]

12. [Where applicable:] [Element I] [If (we) (are) not able to pay you what is owed, you could lose your entire investment.]

13. [Where applicable:] [Element J] [However, you may benefit from a consumer protection scheme (see the section "what happens if we are unable to pay you"). The indicator shown above does not consider this protection.]