The PRIIPs regulation aims to improve the quality of information provided to consumers by introducing a standardised factsheet known as a Key Information Document (KID) for investment products, including investment company shares. KIDs are designed to present the main features in an easy to understand manner and also enable consumers to easily compare the potential risks and rewards between products.
The one year extension means that the obligation to issue a KID will now be imposed from 1 January 2018 instead of 2017. The investment industry welcomes this development which allows for the rules to be agreed and for issuers to have the time to get ready and implement the necessary changes.
Once the obligations are clarified industry bodies such as the AIC in the UK will provide guidance on how the rules should be applied in an investment company context.
To view the text of the Commission’s announcement please click here.