On 26 July 2018, the FCA published a call for input regarding the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation and initial experiences with the new requirements. The FCA is seeking responses from those who are producing, advising on, or distributing PRIIPs (and preparing and providing key information documents), and from consumers now using key information documents to decide whether to invest in these investment products.
PRIIPs are defined as products that are (regardless of their legal form or construction):
- an investment product where the amount repayable to the retail investor is subject to fluctuations because of exposure to reference values or to the performance of one or more assets that are not directly purchased by the retail investor, or
- an insurance-based investment product which offers a maturity or surrender value that is wholly or partially exposed, directly or indirectly, to market fluctuations
The call for input concerns two key areas where the FCA has identified potential challenges in the PRIIPs reporting process. The ten questions concern:
- the scope of the PRIIPs regulation; and
- the contents of the key information document;
Responses to the call for input are invited to be submitted by 28 September 2018.