Regulatory Alerts2016-08-25
Added · Updated
FCA’s disclosure rules following application of PRIIPs Regulation: Feedback to CP16/18 and final rules
The Financial Conduct Authority amends, deletes, or dis-applies specific FCA Handbook rules to align with the direct application of the PRIIPs Regulation, which requires firms to prepare, publish, and provide a Key Information Document (KID) for each packaged retail investment product manufactured. These final rules apply to firms manufacturing, advising on, or selling PRIIPs to the UK retail market, including UCITS management companies and authorised fund managers, starting from 1 January 2018. The document clarifies that tax wrappers such as Individual Savings Accounts are not PRIIPs, while investment trust savings schemes are not considered PRIIPs themselves, though the underlying securities may be. Firms must ensure that costs not reflected in the KID are disclosed separately to retail investors.