The IA is wholly supportive of the principle behind PRIIPs: to provide savers and investors greater transparency and comparability across funds. However, leading customer voices across Europe agree with the IA that this principle is being compromised by new performance scenarios and cost calculations that are potentially highly misleading.
In its response to the FCA’s Call for Input, the IA calls for urgent action to address the failings in the design of PRIIPs, which also impact the retail funds market and the UK DC pensions market.
The IA recommends the following customer-focused approach in order to provide both full transparency and understandable information across the market:
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An open and collaborative approach by EU and UK regulators to work with the asset management industry and other stakeholders to develop the best solutions for savers and investors.
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Immediate action by the FCA to suspend and replace flawed calculation methodologies in MiFID II and DC workplace pension scheme disclosure across the UK.
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Delay the extension of PRIIPs to the wider European fund universe until a rigorous, evidence-based solution is found.
Pres release
© Investment Association
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