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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