The Association of Investment Companies has welcomed a decision by the FCA to delay proposed changes to Key Information Documents (KIDs).

The investment company trade body has previously called for “flawed” KIDs to be suspended pending a full review.

This week the FCA announced that it would confirm in Q1 when the new KIDs rules will be implemented along with any implementation period.

In Consultation Paper CP21/23, PRIIPs – Proposed scope rules and amendments to Regulatory Technical Standards the FCA had said it expected that proposed new KIDs rules would take effect in January.

The delay of several months will allow time for further discussion and a review of the proposed new rules.

Richard Stone, chief executive of the Association of Investment Companies (AIC), said: “We are encouraged that the FCA has listened to industry concerns and is taking its time to get the changes to KIDs right. 

“This will give the regulator breathing space to consider how best to change KIDs to help investors make better decisions. We hope one option being considered is bringing KIDs’ performance disclosures in line with those of UCITS funds. 

“Getting more people involved in investing is a goal which policymakers and the industry share. But to make it work, consumers must have confidence in the products they’re offered, and this can only happen if they have reliable and accessible information. That’s something that KIDs do not provide.

“The FCA has recognised the need for reform but it can only do so much. The Treasury should play its part and launch the promised review of consumer disclosures to bring all investment products into an effective disclosure regime. Brexit has given the government the chance to do things better and we urge it not to delay any further.”