The regulator said that while it recognises that performance scenarios work for certain products, such as structured products, it cannot apply different regulations to different products so will have to scrap the scenarios altogether.
They will be replaced with a “narrative description” of performance.
The FCA will also introduce rules to clarify the scope of the Priips regulation for corporate bonds, making it clearer that certain common features do not automatically make them into a Priip.
It will also introduce “interpretative guidance” to clarify what it means for a Priip to be made available to retail investors.
The rules will be implemented during an implementation period, which begins today (March 25). Companies will have to have implemented the change by December 31 this year.
sally.hickey@ft.com
