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. This critical concern is being shared by even wider constituencies such as the Stakeholder Group of the European Securities & Markets Authority or the European Commission’s Financial Services User Group (FSUG).
Read the full press release here.