The European Commission (EC) has revised the criteria for future performance projections that should be adopted in the upcoming PRIIPs regulation, introducing an obligatory "stress scenario".
The news comes after the European Parliament (EP) rejected the original set of proposals to implement PRIIPs regulation last year, arguing future return projections for PRIIPs products, to be featured on Key Information Documents, could lead to "over-optimistic" outcomes. Its new 'stress scenario' will sit alongside an 'unfavourable scenario', a 'moderate scenario', and a 'favourable scenario', and will project outcomes under extreme but plausible market conditions. The Commission has also proposed the inclusion of comprehension alerts on a common European basis, to identify to retail...
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