Since 2018, investors in the EU have been provided with a basic information sheet with the most important features, such as the costs and risks of an investment, before buying a packaged retail and insurance-based investment instrument (PRIIPs, including funds, life insurance and certificates). However, as an exception retail funds may use the established 'key investor information (KID)' until the end of 2021. BVI has argued strongly for this exception. The reason is the shortcomings in the PRIIPs KID, especially in the requirements concerning costs and performance.
The EU eliminates flaws that we have been criticising for years. We call for an appropriate extension of the exemption for retail funds beyond the end of 2021. The legislators will have to abolish the 'key investor information' (UCITS KIDs) for funds at the same time as introducing the improved PRIIPs KIDs for fund savers. The coexistence of PRIIPs and UCITS KIDs for a fund would confuse investors due to the different information. Fund companies also need to have enough time to carefully implement the new requirements.