Under the EU’s Packaged Retail Investment Product (PRIPs) directive, investors would have to be issued a key information document (KID) that would, amongst other things shed light on a product's past performances. This naturally, has the pension industry up in arms. The exclusion of occupational pension schemes from the PRIPs scope would ”avoid any negative disruption to pension saving” in the EU, particularly in the UK where a need for individuals to receive documentation prior to joining a scheme could undermine the ongoing “auto-enrolment” of workers into company schemes.
EuroFinuse assumes that the relevant industry bodies “may be fighting so hard to keep occupational pensions out of PRIPs because the real returns of UK pension funds have been negative for the last 10 years”.
Read the full article here. (Source: Financial Times)