Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more appropriate disclosures, with a fuller review of the disclosures regime for UK retail investors more generally to come at a later stage. The immediate changes will:
- give FCA the power to clarify the scope of the PRIIPs Regulation through its rules;
- substitute the current requirement to provide “performance scenarios” with a more flexible, and hopefully more useful and user-friendly requirement to provide “appropriate information on performance”; and
- allow further extension of the exemption that allows UCITS to continue to produce KIIDs for up to another 5 years.
Treasury intends to make the necessary legislative changes “when parliamentary time allows”.