The Association of Investment Companies has reiterated its call for Key Information Documents to be suspended in light of proposed changes to the regime.
Earlier this month, EU regulators proposed a series of amendments to the rules, with a full-cost benefit analysis to be prseented to the European Commission in January.
These included proposals to tweak how performance scenarios are prsented.
The KID rules, which have been in effect since January 1, 2018, are meant to make it easy for the average investor to compare products with comparable information on charges, risks and future performance scenarios.
However, critics across the industry have stepped up their concerns that the regulation misses that goal.
Research on KIDs the last month suggested that the documents are inaccessible to 61 per cent of the UK population based on levels of literacy skills.
AIC itself has long been of vocal critic of the piece of legislation.
AIC chief executive Ian Sayers says that the timeframe for updating the rules is too tight, adding to the need to scrap the requirements.
He says: “Given that it took over ten years to get where we are today, it is unrealistic to expect that the problems with KIDs can be resolved in ten weeks.
“The proposals may be a step in the right direction, but fail to address the fundamental flaw of using past performance to predict the future. The proposed changes look too technical for ordinary investors and do not address our concerns about the understatement of risk.
“The proposals demonstrate why the KIDs rules should be suspended to allow time to fix the problems properly and permanently. Otherwise, we will just be back here again in 12 months’ time.”