The Consultation Paper can be found here.
Simmons & Simmons will publish a full summary of the FCA Consultation Paper shortly. Immediate points to note are as follows:
Closing date - the consultation closes on 19 September 2016.
NURS-KII - The FCA has made it clear that firms that offer NURS to retail investors can continue to produce a NURS-KII document and will not be required to produce a PRIIPs KID.
The FCA had considered various options in relation to the application of the PRIIPs regime for managers of NURS. Currently, managers of NURS are permitted to produce a document which is the equivalent to a UCITS KID (a NURS KII) by seeking a modification by consent to the disclosure requirements set out in COBS and COLL. It was hoped that these NURS KIIs would be accepted as adequate for the purposes of availing of a transition period being offered to UCITS manufacturers under the PRIIPs regulation, which appears to be confirmed by this consultation paper, subject to certain drafting amendments being made to the current NURS KII.
It is important to note that NURS managers who continue to rely on a key features document or simplified prospectus will not be permitted to continue with this form of investor disclosure from 31 December 2016.
Third county provisions - the FCA’s current view is that the PRIIPs Regulation will apply to persons outside the EEA (manufacturer or distributor) who deal with EEA retail clients. Accordingly, a third-country manufacturer or distributor of a PRIIP to retail clients in the EEA (e.g. an AIFM for schemes from the Channel Islands or Isle of Man sold in the UK) will be required to prepare and produce a KID. Conversely, if the manufacturer or distributor is based in the UK EEA and targets only non-EEA retail clients, the FCA’s view is that the PRIIPs Regulation will not apply and no KID will need to be prepared.
Please see the PRIIPs microsite for further details on the PRIIPs Regulation and the implications it has for asset managers and financial institutions.
This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.