AIC calls for suspension of 'toxic' KIDs

Could lead investors to make 'disastrous decisions'

The Association of Investment Companies has called for the suspension of the Key Information Documents (KIDs), while urging the Treasury Select Committee to launch an enquiry amid the failure of policymakers and regulators to protect consumers with regard to the highly-criticised documents.

The trade body has been vocal in the past in its criticism of the Key Information Documents (KIDs), arguing they are "systematically flawed" and could mislead investors due to their reliance on past performance for future projections. Closed-ended companies were made to provide KID information under the new PRIIPs legislation, which came into force at the start of the year. However, this was followed by high-profile criticism from a number of investment trust providers and boards from Baillie Gifford and Fidelity. Earlier this year, the AIC refused to host KIDs on its website as it be...