The FCA have issued their final position on the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation.

From 25 March 2022, firms must apply the Handbook rules and the PRIIPs Regulatory Technical Standards. The transition period ends on 31 December 2022.

By way of reminder, the PRIIPs Regulation requires certain firms to prepare and provide investors with standardised key information documents (KIDs). It aims to improve consumer understanding and outcomes by standardising the disclosures retail investors receive, giving them the ability to compare competing products.

Based on industry feedback received from the Consultation Paper the FCA issued in July 2021, the following changes will be made:

  1. Rules to clarify the scope of the PRIIPs Regulation for corporate bonds;
  2. Interpretative guidance to be provided on what it means for a PRIIP to be "made available" to retail investors; and
  3. Amend the PRIIPs Regulatory Technical Standards to:

a) replace the requirements and methodologies for presentation of performance scenarios in the KID with a requirement for narrative information on performance to be provided

b) address the potential for some PRIIPs to be assigned an inappropriately low summary risk indicator in the KID

c) address concerns about certain applications of the ‘slippage’ methodology when calculating transaction costs

Firms marketing funds through the TMPR are not subject to the above and may continue to produce UCITS Key Investor Information Documents (KIIDs) until the anticipated date of 31 December 2026.