Advisers concerned performance scenarios in a Priips key information document might mislead their clients can give more information to the investor, the FCA says.
The regulator today published a statement on the KIDs, brought in on 1 Janaury through new Priips regulation.
Analysts and investment firms have warned over the misleading KIDs, with Baillie Gifford this week saying several boards of its investment trusts have written to the FCA about their concerns.
In the statement, the FCA acknowledges the concerns expressed by those in the industry that the performance scenario information in the KID might appear too optimistic.
It says: “Where firms selling or advising on Priips have concerns that the performance scenarios in a particular KID may mislead their clients, they should consider how to address this, for example by providing additional explanation as part of their communications with clients.”
It adds: “Where a Priip manufacturer is concerned that performance scenarios in their KID are too optimistic, such that they may mislead investors, we are comfortable with them providing explanatory materials to put the calculation in context and to set out their concerns for investors to consider.”