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

Serious investor detriment

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The new PRIIPs directive came into effect on 1 January
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The new PRIIPs directive came into effect on 1 January

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 ...

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