AIC calls for suspension of KIDs in response to European proposals

Ian Sayers, CEO of the AIC, responds to proposed changes in the ‘Joint Consultation Paper concerning amendments to the PRIIPs KID’.

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Today the Association of Investment Companies (AIC) reiterated its call for Key Information Documents (KIDs) to be suspended having considered the proposed changes in the ‘Joint Consultation Paper concerning amendments to the PRIIPs KID’.

Ian Sayers, Chief Executive of the Association of Investment Companies said: “Given that it took over 10 years to get where we are today, it is unrealistic to expect that the problems with KIDs can be resolved in 10 weeks.  The proposals may be a step in the right direction, but fail to address the fundamental flaw of using past performance to predict the future. The proposed changes look too technical for ordinary investors and do not address our concerns about the understatement of risk.

“The proposals demonstrate why the KIDs rules should be suspended to allow time to fix the problems properly and permanently. Otherwise, we will just be back here again in 12 months’ time.”

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Notes

  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 355 members and the industry has total assets of approximately £182 billion.
  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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