The EU Authorities' draft implementation rules on Key Information for retail investment products must be thoroughly improved in order not to hurt savers’ and investors’ protection

The Joint Committee of the European Supervisory Authorities recently issued its proposal for regulatory technical standards (RTS) on Key Information Documents (KIDs) for Packaged Retail and Insurance-based Investment Products (PRIIPs). BETTER FINANCE already expressed its major concern with the destruction of a key improvement of the UCITS funds regulation in the past: the mandatory, standardised and supervised disclosure of past performance of the investment product and of its benchmark. Its replacement with “future performance scenarios” - that are in fact still built on past performances, but are not probability weighted, are linear and are using a holding time chosen by the manufacturers - will only mislead savers.

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