I got an Email from Degiro. It states that according to new PRIIP regulations certain Funds and ETFs are now required to have a KID in all local languages. The email seems to have been triggered by some positions in my Swiss account. The topic is also discussed on Reddit.
Degiro states you can check that for a products in its “Documents”-tab on their website. But I found ETFs that do have KIDs in every language on their own website whilst Degiro doesn’t show (have?) any.
Additionally I think they are closing the loophole where you exercise options to get banned ETFs. I can’t find a reference at the moment.
The changes are effective immediately (so yesterday, 16.03.2023).
I’m not sure if Degiro is correct in their decision and their interpretation of applicable law. But they surely think that they had do impose that restriction.
This is another example what I dislike in the European Union so much, and why I hope Switzerland is never going to join. There’s all this talk about common market, free movement of people, blablabla. On the one hand, they’re removing these hurdles to enable companies to base themselves in favourable jurisdictions and conduct their business cross-border. On the other hand, they’re instituting requirements that require so much regulation and red tape that ultimately end up costing ordinary consumers.
These KIID regulations (that were brought about by the EU) do not only run contrary to the principle of free movement of people, goods and services. They also cause service providers to institute what is effectively geo-blocking (based on a consumer’s residence) - something the EU themselves claims to be fighting.
The irony is that it doesn’t reliably serve its purpose of ensuring the information of investors.
Not only can a customer in Greece or Czechia perfectly understand English. Even a German or French investor can move to Greece or Czechia - despite speaking not a single work of Greek or Czech. And still be cut off from access to the funds he has been investing in in his home country. Though KIID documents may have been translated into his mother tongue for the DE/FR market.
I have exactly the same behavior on CornerTrader, actually less the email. One of those days I continued buying VOO only to get a message about missing KID, preventing me from purchasing….
No info so far