The European Commission (EC) has revised the criteria for future performance projections that should be adopted in the upcoming PRIIPs regulation, introducing an obligatory "stress scenario".
The news comes after the European Parliament (EP) rejected the original set of proposals to implement PRIIPs regulation last year, arguing future return projections for PRIIPs products, to be featured on Key Information Documents, could lead to over optimistic outcomes. Its new 'stress scenario' will sit alongside an 'unfavourable scenario', a 'moderate scenario', and a 'favourable scenario', and will project outcomes under extreme but plausible market conditions. The Commission has also proposed the inclusion of comprehension alerts on a common European basis, to identify to retail i...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes