Treasury is consulting on plans to revoke the PRIIPs Regulation and replace it with a more suitable alternative.
The PRIIPS Regulation has not been popular, with key criticisms being that it requires misleading information to be provided to investors and is very burdensome for firms. So the Government views this as a priority retained EU measure to revoke. The consultation sets out the key issues the Government has identified with the Regulation, and outlines its proposed new direction for retail disclosure. The new requirements will focus on clear and useful information for investors that is proportionate to the risk they are taking, and will provide them with additional choice while reducing burdens on firms. The Government does not believe that broad-based comparability between types of product is achievable or appropriate and that it is more appropriate that the investor understands the specific product they are purchasing. It proposes that the new requirements be in FCA Rules and will integrate provisions for UCITS within the new framework.
While the consultation specifically refers to PRIIPs, it encourages responses on wider obstacles to the offering of investment products and forms of disclosure.
Consultation closes on 3 March 2023.