IA urges FCA to delay 'deeply flawed' PRIIPs extension

Retail funds to be in scope from 31 December 2019

The Investment Association (IA) has publicly called on the Financial Conduct Authority (FCA) to help bring a temporary halt to the planned 2019 extension of PRIIPs regulation to European retail funds.

In response to the FCA's call for evidence on the regulation, which closed on 29 September, the IA urged the FCA to take a "customer-focused approach" to rectify issues that have arisen from its introduction. FCA's Bailey promises action on PRIIPs and MiFID II failings PRIIPs, which came into force for most fund products in January, requires asset managers to provide a Key Information Document (KID), which has been heavily criticised due to its controversial requirement to provide predictions of future performance as well as estimations of transaction costs. The performance predict...