Senior Tory MEP warns EU on Prips information overload
A senior Conservative MEP is warning the EU is “obsessed” with key investor information disclosure and risks overloading investors with too much information.
MEPs, finance ministers and European commissioners are preparing for final negotiations on the Prips directive next month when they will finalise rules on investor transparency.
Economic and monetary affairs committee chair and Liberal Democrat MEP Sharon Bowles is calling for additional layers of disclosure, but shadow rapporteur for Prips and Tory MEP Syed Kamall says there is a risk of information overload.
Speaking to Money Marketing, he says: “How many people really read the Kiids? We seem obsessed with the issue. Investors should definitely get information about where their money is going and about fee structures but it’s a bit like food labelling.
“People want all kinds of information on fat or cholesterol but you can end up with too much and become overly transparent. It means you have so much information that people don’t actually read it, which is what we need to avoid. We need to prioritise what is useful for investors.”
Jacksons Wealth Management managing director Pete Matthew says: “There must be a way to change Kiid so it highlights the key points and clients only see the most important features.”