While trying to place an order on an ETF you might receive one of the following error messages due to restrictions applying within the EU:
- "Exposure cannot be increased due to instrument configuration"
- "Key Information Document (KID) is not available. You cannot trade this instrument as a Retail Client"
Why are there restrictions and what is a KID?
Due to the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation that came into effect on 1. January 2018, financial product “manufacturers” are required to produce Key Information Documents (KIDs) for each product they produce describing the key features of the product across risk, rewards and costs.
For a number of instruments, the manufacturer/issuer may have chosen not to issue a KID. The effect is that Saxo will no longer be in a position to facilitate trading to retail clients. (See also: Retail or Professional? How do I check my classification status?)
Why can’t I trade an ETF even if the provider has produced a KID?
Before an ETF becomes available for trading, the ETF provider must ensure that it complies with regulatory requirements in each country where it intends to distribute the fund. This involves obtaining necessary approvals and meeting local regulations. If the ETF is not distributable in your country, Saxo cannot make it available for trading.
I was able to trade a particular ETF until now, but not anymore, why?
You might lose access to trade a specific ETF for the following reason:
The PRIIPs regulation requires the KID to be updated whenever there are changes to the information that are significant enough to affect the investor’s decision to invest. Saxo must therefore restrict access to trade ETFs where providers haven't yet updated the KIDs, until the new updated KIDs are made available again.
How do I check if the instrument has the required KID?
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To see if you can trade an ETF as an EU country resident, please use our ETF availability tool located on our commissions' pages. |