In this Feedback Statement, we summarise responses to our Call for Input on the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation. We also outline our next steps.
The PRIIPs Regulation requires certain firms to prepare and provide investors with standardised key information documents (KIDs). It aims to improve consumer understanding and outcomes by standardising the disclosures retail investors receive, giving them the ability to compare competing products.
We asked those who are producing, advising on, or distributing PRIIPs (and preparing and providing KIDs), and consumers now using KIDs to share their initial experiences of the requirements. We asked questions around the scope of the PRIIPs Regulation, and around the content of KIDs.
The Call for Input (CfI) generated a high level of interest. We received 103 responses from firms, trade bodies and consumer organisations. In this Feedback Statement:
We believe that the concerns raised by respondents to the CfI about uncertainty of scope of products needing to comply with PRIIPs and the unintended effects of compliance requirements are particularly serious and may risk causing consumer harm if not addressed.
This Call for Input will be of interest to:
This includes, but is not limited to the following firms:
We will continue to work closely with the European Supervisory Authorities and the European Commission through 2019, subject to the nature of the UK’s relationship with the EU. We do have significant concerns about potentially conflicting requirements or lack of clarity about scope of application of PRIIPs requirements. We will consider the extent to which domestic interpretive guidance could mitigate our concerns around performance scenarios, Summary Risk Indicators and the scope of the PRIIPs legislation.