AIC Chief Executive, Ian Sayers, comments on the FCA’s call for input on PRIIPs.
Today the FCA published the document, “Call for Input: PRIIPs Regulation – initial experiences with the new requirements”.
Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “We welcome the decision by the FCA to seek evidence on KIDs and will be publishing comprehensive research into their many failings as part of our response.
“The FCA’s review must put consumers at the centre of the process. The FCA seems more interested in defending the regulations than accepting what is obvious to everyone else, that KIDs are confusing and misleading. Arguing that negative transaction costs are not inaccurate epitomises this problem. There may be a technical basis for arguing this, but for a consumer it simply doesn’t make sense. The argument that performance scenarios are not forecasts, but illustrative, is just semantics. If they are not intended to give investors an idea of what they might get back, what is the point of them?
“As our evidence will show, very often what KIDs tell the consumer is dangerously wrong, indicating profits when they would have made losses and vice versa. KIDs are a good example of why it would be better to be roughly right, than precisely wrong, and the FCA needs to acknowledge this before more consumers are misled.”
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