Industry steps up calls for urgent revisions to 'misleading' KIDs as PRIIPs comes into force

Serious investor detriment

Industry trade bodies have made fresh appeals for action to be taken to avoid "serious investor detriment" resulting from newly-enforced PRIIPs literature requirements that will "at best confuse… and at worst mislead" consumers.

The European Union's Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation, which came into force on 1 January, is aimed at helping retail investors better understand and compare the key features, risks, rewards and costs of different products through a short Key Information Document (KID). This is a stand-alone, standardised document prepared for each investment, which can be up to a maximum of three sides of A4-sized paper. However, the European Fund and Asset Management Association (EFAMA) said KID's mandated figures, particularly those related to performance ...