Firms may provide projections to retail investors in addition to PRIIPs KIDs

Of relevance to: Manufacturers of packaged retail and insurance-based investment products and persons advising on, or selling, those products to retail investors.
Key date: Applicable from 1 January 2018

Following changes to the FCA’s Conduct of Business sourcebook (COBS), firms will have the option, but not the obligation, to continue to provide projections to retail investors outside of the Packaged Retail and Insurance-based Investment Products (PRIIPs) standardised key information document (KID), providing they are produced in line with COBS rules.

COBS 13.5 Preparing product information: other projections sets out how a firm must prepare such a projection; the main changes being in COBS 13.5.2R and COBS 13.5.2BG.

If firms choose to provide a projection alongside the PRIIPs KID, then, to avoid consumer confusion, they will need to explain all differences between ‘performance scenarios’ in the KID and any projection provided, in line with the ‘fair, clear and not misleading rule’.