Investment Association supports the EU Parliament's stance on PRIIPs
Wednesday 14 September 2016
Following the European Union Parliament’s decision today to reject the regulatory technical standards for the PRIIP KID*, Florian van Megen, Retail Markets Specialist at the Investment Association, said:
“We agree with the overwhelming majority of the European Parliament that rejected the proposals for the PRIIP KID requirements today.
“The proposed rules would have led to extremely flawed and misleading retail investor disclosure. We would urge the Commission to amend the presentation of costs and charges and improve the performance disclosure by adding historic performance alongside future scenarios.
“While past performance is not a guide to future performance, the inability to see the historic delivery of a product is risky for consumers. Although we do not disagree with the inclusion of future performance scenarios, we do not believe these should be given in isolation. Only past performance reliably shows the investment experience and a manager’s track record.
“We are fully supportive of comprehensive costs and charges disclosure, but the rejected suggestion is based on assumptions rather than real delivery. Not only could it mislead investors by not showing what they will actually pay but it also makes the comparison of different products impossible.
“Now is the time for the Commission to produce KID requirements that will give consumers the information they need to make informed investment choices.”
-ENDS-
Notes to Editors:
*Packaged Retail Insurance-based Investment Products Key Information Document
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Linsey White
Head of Media Relations
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M 07508 724 022
Alex Hogan
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M 07508 724 066
About the Investment Association:
- The Investment Association is the trade body that represents UK investment managers who manage over £5.5 trillion on behalf of clients.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.
For further information, please contact:
For media, to receive the full consultation document, please contact Helen Ayres
Helen Ayres, Communications Manager: [email protected]
T +44 (0)20 7269 4620; M +44 (0)7508 724 066
IA press office: [email protected]
About the Investment Association (IA):
- The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the asset management industry supports 100,000 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 35% of all assets managed in Europe.
