Commenting on the FCA’s statement in relation to PRIIP KID performance disclosure, Julie Patterson, Head of Asset Management Regulatory Change, KPMG said:
“For a year or more, fund managers from around Europe have been expressing concern about potentially overly rosey performance presentations.
“While it is welcome from the investors’ perspective that the FCA has taken steps to address these concerns, there remains a risk of investor confusion as there is no guarantee that the explanations provided on potentially misleading data will be noticed or understood. Also, given the cross border nature of the funds industry, action needs to be taken at EU level.
“Although UCITS are not yet subject to the full PRIIP KID requirements, UCITS managers have to provide PRIIP KID type data to distributors so that they can meet their MiFID II obligations. Therefore, managers of both UCITS and Alternative Investment Funds of any kind are keeping a close eye on this issue.”
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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff. The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.