On 22 November 2024, the Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024 came into force and were published on legislation.gov.uk, along with an explanatory memorandum.
The Regulations make transitional amendments in relation to cost disclosure requirements for listed closed-ended funds (more commonly referred to as investment trusts) to two pieces of assimilated law: (i) the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation; and (ii) certain provisions of the Markets in Financial Instruments Directive (MiFID) Org Regulation.
- In the PRIIPs Regulation, investment trusts are added to the list of excluded products, meaning that they (and persons advising on or selling shares of investment trusts) will not be required to produce a Key Information Document.
- In the MiFID Org Regulation, costs of manufacturing and managing shares in an investment trust are excluded from cost disclosure requirements. This means that investment trusts (and firms investing in them) will not be required, pursuant to the MiFID Org Regulation, to disclose to clients costs and charges relating to investment trusts.