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FCA accepts AIC’s concerns about KIDs

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28 February 2019

AIC calls on FCA to act now to protect consumers from harm.

The Association of Investment Companies (AIC) has responded to the FCA’s ‘PRIIPs Call for Input Feedback Statement’ (FS19/1).

Ian Sayers, Chief Executive of the Association of Investment Companies (AIC) said: “It is good to see that the FCA has taken on board the strong concerns we have raised about Key Information Documents (KIDs). Its feedback statement agrees that both the summary risk indicators and performance scenarios in KIDs can be misleading, and that the regulation could cause consumer harm if problems are not addressed.

“We welcome the FCA’s intention to work in Europe to address these problems, but this will take time, and meanwhile consumers are still being misled. The regulator should take a creative and urgent approach to protect UK consumers from harm, for example by ensuring that information in KIDs does not spread to other parts of the market.

“We hope to work closely with regulators to discuss options for immediate action.”

The AIC’s concerns about KIDs are presented in its publication, ‘Burn before reading’.

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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 358 members and the industry has total assets of approximately £184 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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