Friday March 25 2022

News Source: Fund Regulation

Focus: PRIIPS KID

Type: General

Country: UK




The FCA have confirmed changes to the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation to address the areas that post the most harm to investors.

These new requirements are one of the first examples of the FCA confirming UK divergence from EU rules following Brexit.

Those that manufacture, advise on, or sell PRIIPs are required to produce and provide a Key Information Document (KID) about the product they are selling. The FCA changes remove information about the performance of certain products which can be misleading for consumers and will help those buying without financial advice to rely on the KID to make more informed investment choices.

Following feedback from respondents, firms will now have until the 31 December 2022 to implement the changes. The FCA have also provided more clarity on how they expect firms to construct narrative descriptions of performance within KIDs.

While some respondents called for a fundamental review of the whole PRIIPs regime, the legislative changes made by HM Treasury were targeted to fix the most harmful issues quickly following the UK’s exit from the EU.

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