The regulation was due to be implemented on 1 January 2017. PRIIPs will now be delayed until 1 January 2018.
Ian Sayers, Chief Executive of the Association of Investment Companies said: “The delay to the implementation of PRIIPs is a victory for common sense. It’s far better for the EU to take some extra time to get the detailed rules right on KIDs rather than sticking rigidly to the original timetable. We hope that the EU will use this extra time to consider and address some of the concerns that have been raised.”
PRIIPs will require a Key Information Document (KID) to be provided to consumers before they buy an investment product. The AIC called for a delay in January 2016 and reiterated this following the rejection of the PRIIPs Level 2 requirements by the Economic and Monetary Affairs Committee of the European Parliament at the beginning of September. The MEPs were concerned that the investment disclosures could mislead retail investors.
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- 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 345 members and the industry has total assets of approximately £154 billion.
- 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.