Steven Maijoor, chair of pan-European regulator ESMA, has downplayed industry concerns about the 'flawed' methodology for disclosing transaction costs under new PRIIPs rules, adding negative figures "should be extremely rare".
The European Union's Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation, which came into force on 1 January 2018, is aimed at helping retail investors better understand and compare the key features, risks, rewards and costs of different products through a short Key Information Document (KID). However, the industry has been critical of the new regulations, including the methodology for calculating transaction costs to be included in KIDs. These have previously been described by the Investment Association as "exceptionally difficult for customers to understand" ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
