Baillie Gifford has warned there are "serious flaws" in the new investment trust Key Information Documents (KIDs) introduced under the PRIIPs regulation that kicked in on 1 January.
The Edinburgh-based investment management partnership said the scenarios in the KIDs outlining the potential returns to investors, which are required under the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation, are potentially misleading as they are based on past performance and could lead to investors "receiving poor information". The KIDs are a stand-alone, standardised document prepared for each investment, which can be up to a maximum of three sides of A4-sized paper, aimed at helping retail investors better understand and compare the key features, risks, r...
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