The FCA fund objective working group has joined other industry bodies in calling for a review of the new Key Information Documents issued to investors.
Since 1 January, Priips legislation has meant advisers now have to publish a stand-alone, standardised KID to their clients including performance scenarios, risks, and the total cost of products.
Earlier this week, the Investment Association called for an “urgent” review of the new KID saying it was potentially misleading to clients. The warning was echoed by other industry trade bodies.
In an update on its current works, members of the FCA fund objective working group, chaired by FCA chief economist and director of competition Mary Starks, said Priips’ language “may not improve comparability” of funds, especially in the way it describes how a fund is managed.
The FCA has already given advisers licence to go further than the KID to provide additional explanation if they believe the performance scenarios would mislead clients.