Qi Qi Dong March 25, 2022
What is changing
The FCA is changing the PRIIPS regulation after analysing the feedback received to the consultation CP21/23. Changes are:
- Introducing rules to clarify the scope of the PRIIPs Regulation for corporate bonds, making it clearer that certain common features of these instruments do not make them into a PRIIP
- Introducing interpretative guidance to clarify what it means for a PRIIP to be ‘made available’ to retail investors
- Amending the PRIIPs Regulatory Technical Standards to:
- replace the requirements and methodologies for presentation of performance scenarios in the KID with a requirement for narrative information on performance to be provided
- address the potential for some PRIIPs to be assigned an inappropriately low summary risk indicator in the KID
- address concerns about certain applications of the ‘slippage’ methodology when calculating transaction costs
Who this affects
This will directly affect all those manufacturing, selling, or advising on a PRIIP, including but not limited to:
- issuers of securities that are or may be classed as PRIIPs (including those that do not require Part 4A authorisations under FSMA)
- life companies and discretionary investment management firms
- firms providing insurance-based investments services
- fund managers, wealth managers and financial advisers
- stockbrokers and other firms that provide advice to retail clients on funds
- issuers of structured products and derivatives
- firms operating retail distribution platforms
The full information is available from the FCA website: