ESMA has published the advice it received from the Securities and Markets Stakeholder Group on amending the PRIIPs KID. The group fully supports the principle of the KID but is disappointed that there are proposals for change so soon after firms spend significant resource to implement the original requirements and also that the consultation period is so short, which does not allow for proper consultation.
The Group reminds ESMA that it brought certain shortcomings in the KID to regulators’ notice when the original proposals were made and now stresses the urgency in fixing what it describes as the serious problems in the PRIIPs framework, not least in terms of scope, costs information about funds and performance scenarios. The proposals address only one of these concerns – and even then not satisfactorily.
The Group urges that time for the appropriate levels of consultation is important, although the review is urgent, and says that the exemptions for UCITS and some AIFs should be extended until the review of the PRIIPs Level 1 Regulation is complete and its results reflected in EU rules.