The Financial Conduct Authority will confirm any amendments to the Packaged Retail and Insurance-based Investment Products (Priips) regime, especially surrounding Key Information Documents (Kids), in Q1 2022.
The regulator’s original intentions were to implement the changes from 1 January 2022.
The FCA said: “In our Priips consultation, we noted that we expect final rules to take effect in January 2022. We are now aiming to publish our policy statement in Q1 2022.
“This will include confirmation of when the rules will take effect and any implementation period.”
Encouraging
Richard Stone, chief executive of the Association of Investment Companies (AIC), said it was encouraging to see the watchdog listen “to industry concerns” and take its time to “get the changes to Kids right”.
“This will give the regulator breathing space to consider how best to change Kids to help investors make better decisions. We hope one option being considered is bringing Kids’ performance disclosures in line with those of Ucits funds.
“Getting more people involved in investing is a goal which policymakers and the industry share. But to make it work, consumers must have confidence in the products they’re offered, and this can only happen if they have reliable and accessible information. That’s something that Kids do not provide.
“The FCA has recognised the need for reform, but it can only do so much. The Treasury should play its part and launch the promised review of consumer disclosures to bring all investment products into an effective disclosure regime. Brexit has given the government the chance to do things better and we urge it not to delay any further.”
The AIC recently slammed the FCA and the UK government for their lack of action in changing the Kid regime.
