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“A missed opportunity to kick-start reforms of Key Information Documents”

31 July 2020

AIC responds to HM Treasury’s policy statement on the PRIIPs Regulation.

Yesterday HM Treasury published a policy statement, Amendments to the Packaged Retail Investment and Insurance-based Products Regulation. This explains HM Treasury’s proposed approach to amend the PRIIPs (Packaged Retail Investment and Insurance-based Products) Regulation and sets the requirements for the standardised disclosure document, the Key Information Document (KID). 

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC), said: “These proposals are disappointing and a missed opportunity to kick-start reforms of Key Information Documents.  KIDs are actively confusing and misleading consumers.  This has been clear since they were introduced in 2018.

“The Government will allow the FCA to change how performance is presented but will not let it address other fundamental failures, including the disclosure of risk.  It also intends to let the regulator postpone KIDs for UCITs funds for up to five years.  This is good news for investors buying those products but means consumers who want to purchase other investments will remain at risk of being misled.

“With Brexit fast approaching, and the EU unable to agree its own reforms, KIDs are an area where the UK could demonstrate the benefit of acting independently to deliver sensible reforms to help consumers.  Instead the statement only makes a commitment to a wholesale review in the ‘longer term’. 

“We hope the authorities will think again and accelerate their plans so that comprehensive reform of KIDs becomes an early priority.”


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  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 360 members and the industry has total assets of approximately £202bn.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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