The European asset management trade body is calling for Priips Key Information Document rules to be revised, saying they are causing “serious detriment” to investors.
The European Fund and Asset Management Association says that the rules particularly in relation to performance and costs “at best confuse” investors and “at worst mislead them”.
EFAMA has collected evidence from its members and published a study which found the data requirement is producing confusing and unreliable figures, transaction costs that are either over or underestimated, and sometimes has even produced overall negative transaction cost figures.
As a result, this forces manufacturers to make claims for products that hinder investors’ understanding of them.
EFAMA director general Peter De Proft says: “We urgently call on the European supervisory authorities and the European Commission to plan an immediate targeted revision of the Priips delegated regulation, well ahead of any planned formal review of the rules. The clock is painfully ticking, and time is of the essence as investors are currently presented with misleading information.
“We believe that a level of urgency is justified and we ask the ESAs and the European Commission to take swift action in order to stop systematic misinformation of investors and avoid further consumer detriment.”
FCA chief executive Andrew Bailey recently voiced his concerns about the new Priips regulation.
UK trade bodies the Investment Association and Pimfa have both called for reviews of Priips rules, in particular the new Key Information Documents issued to investors.