Date: 29th June 2018
Author: BETTER FINANCE
On Thursday 28 June, the European fund and asset management industry body issued a press release stressing the worrying shortcomings of the rules governing the Key Information Documents (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs). This follows the publication of its Evidence Paper that found that the new methodology for calculating transaction costs imposed by the PRIIPs regulation often produces positive “costs” and that the new KID deprives investors of a crucial past performance information.
BETTER FINANCE wholeheartedly agrees with these findings and warns against the use of future performance scenarios that will not help investors make investment decisions, and even mislead them, as they will be provided with excessively optimistic performance scenarios.