The PRIIPs regulation goes into effect on 1 January 2018. Read more on how you can ensure your business is prepared.
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European financial services companies will be required to manage an immense amount of Key Information Document translation once the PRIIPs regulation goes into effect on 1 January 2018. This is a large undertaking; however, there are solutions that can centralize and streamline Key Information Document translation to ensure compliant, standardized, industry-specific information is successfully delivered to consumers across Europe.
Learn more about how our cutting-edge language translation services and technology help you prepare for PRIIPs and so much more.
What is the PRIIPs regulation?
Since the financial crisis in 2008, the European Commission has been taking measures to make complex financial products more transparent. One such measure is a regulation that strives to protect consumers by improving the quality of information associated with Packaged Retail and Insurance-Based Investment Products (PRIIPs). An integral piece of this legislation is a new, standardized “fact sheet” called a Key Information Document (KID), which will offer consumers a simple, clear and accessible explanation of an investment product’s features. Ultimately, PRIIPs KIDs will help EU consumers make more educated financial decisions by enabling them to easily compare the pros and cons of various investment products, funds and investment-linked insurance policies.1 Click here for more information on PRIIPs KIDs.
The original enactment of the PRIIPs regulation was actually extended by one year from 2017 to 2018 because the European Parliament rejected the legislation’s initial Regulatory Technical Standards that were instrumental in defining KID requirements. The upside of this delay is it gave banks and other financial institutions more time to prepare for and comply with the regulation. That said, the 1 January 2018 enactment date is fast approaching and financial institutions must ensure they have the systems and processes in place to translate, localize and deliver a large amount of product information to European consumers in a format that complies with PRIIPs KID standards.
Translation: A critical ingredient for PRIIPs Key Information Documents
Producing a KID for every Packaged Retail and Insurance-Based Product is a tall order – especially for large financial institutions with expansive portfolios of complex offerings and millions of customers located in different countries throughout Europe. Not only will this mean developing and managing a large amount of technical, industry-specific content, but also necessitate the translation and localization of that content into a variety of languages. Furthermore, the source content and translated content must adhere to PRIIPs KID requirements. Without having the proper solutions in place to govern KID translation, this monumental task could waste resources, result in low-quality translations and be plagued by inefficacies. So how can you avoid a translation disaster?
Using a centralized process for improved Key Information Document translation quality
Working with a language services provider who can centralize the translation process is probably the single most important action financial institutions can take to control PRIIPs KID translation and ensure documents remain compliant as they are localized for different languages and cultures throughout Europe.
Multiple departments and divisions of financial companies are likely to separately request KID translations, and without a centralized translation process, these requests could become unmanageable and cost your company more than you realize. Below are four key benefits of partnering with a supplier to establish a centralized translation process.
1. Centrally stored translation assets
The epitome of control: one place for all your organization’s translation assets. With a centralized process, translation project requestors will know exactly where to turn when KID (or any other) translations are needed. All your translation assets, including multilingual reference materials, are stored in one translation management system (TMS), making them easy to locate and ensuring these valuable tools get applied across all projects.
Using one translation management system also creates a single repository to manage all multilingual content. This can save a significant amount of time because requestors can avoid hunting through multiple locations to find information on which projects are in development, which have been completed, etc. Team members will know exactly where to look when they need to access files that have already gone through translation and can even take an inventory of which KIDs the company has already tackled.
2. A robust translation memory
A company that centrally manages all translation initiatives in one translation management system also has access to a consolidated, organization-wide translation memory. A large translation memory makes it easier to find a greater number of exact and fuzzy matches to garner increased cost savings and give you more control over your translation budget. Centralized translation memory and optimized processes greatly improve efficiency and enable companies to tackle a significant increase in the volume of content while only slightly growing their budget in a given year.
3. Messaging consistency and quality translations
Working in a central translation management system can help ensure better messaging consistency across global content, even if that content is produced by multiple, geographically dispersed teams.
For example, imagine a financial services company whose marketing team in Germany uses an entirely different translation memory for translating KIDs into French than its marketing team in Spain who is also translating KIDs for the French market. This situation could introduce translation inconsistencies into the company’s global messaging and compromise standardization efforts because the teams’ databases are completely different. Even if both teams intend to use the exact same source content, when data is stored in separate translation memories, the teams’ translations will likely differ. This is because different linguists may select different words during the translation process if there are multiple words that mean the same thing. When one translation memory is used by all, a phrase is only translated by a linguist once. All instances of that content in subsequent projects are then translated identically because the translation memory is applied before that new project goes to a linguist.
4. Organization-wide translation reports
All too often, companies struggle to get a clear understanding of how much they spend on translations across the entire organization, how much cost savings they realize through leveraging translation memory, how quality is measured and more. Without this information, it’s challenging to make informed business decisions surrounding the translation of KIDs or your translation program as a whole. By using one central system to manage your translation initiatives, you can gain a holistic view of your program’s performance.
For example, a centralized translation process will enable you to evaluate compliance and quality across all languages using segment-level analysis reports. These reports allow you to see where linguists are making changes to translated content within the translate-edit-proof process. This will help you identify languages for which there are a large number of changes being made during the edit and proof steps. Based on that information, you make adjustments that will result in fewer changes to KIDs (and all content) over time, which indicates increasing translation quality and standardization.
Ultimately, centralizing data in one platform alleviates challenges that are created when information is stored in disparate systems.
Finding the right language services provider
A centralized translation process can significantly benefit financial institutions, but accomplishing this is no trivial task. If you’re stuck with an inefficient translation process, a logical place to start is a localization assessment.
AMPLEXOR can analyze your company-wide technology and processes to determine the best way of establishing a future-proof translation program that can solve your end-to-end content globalization challenges associated with PRIIPs KIDs or any other regulation.
If centralization is the right path for your company, we’ll help you with the entire process, coaching you along the way so your translation program doesn’t miss a beat.
➡ Read this article in French
➡ Read this article in German
1Commission extends the application date of the PRIIPs Regulation by one year; European Commission - Press release
About the author
Gretchen Sampair is a Digital Communications Specialist at AMPLEXOR International and based in Wisconsin. Gretchen joined AMPLEXOR in July 2017 and specializes in marketing content for global content solutions.