The AIC joins the European Fund and Asset Management Association (Efama) and leading international adviser associations in condemnation of the requirements.
Welcoming the publication of the FCA’s call for input: PRIIPS Regulation – initial experiences with the new requirement, Ian Sayers, AIC chief executive said: “The FCA’s review must put consumers at the centre of the process.”
“The FCA seems more interested in defending the regulations than accepting what is obvious to everyone else, that Kids are confusing and misleading.
“Arguing that negative transaction costs are not inaccurate epitomises this problem. There may be a technical basis for arguing this, but for a consumer it simply does not make sense.
“The argument that performance scenarios are not forecasts, but illustrative, is just semantics. If they are not intended to give investors an idea of what they might get back, what is the point of them?”