Statement
This supervisory statement of the European Supervisory Authorities (ESAs) addresses the response to concerns that the information in the Key Information Document (KID) for Packaged Retail and Insurance-based Investment Products (PRIIPs) describing what the retail investor could get in return ("performance scenarios") can in certain cases provide retail investors with inappropriate expectations about the possible returns they may receive.
The overall objective of this statement is to achieve a high, effective and consistent level of regulation and national supervision promoting a level playing field and the protection of retail investors.
In the view of the ESAs the performance scenarios could, based on the recent economic environment, provide an overly positive outlook for potential future returns if they are taken to be best estimate forecasts. This relates, in particular, to where products have experienced positive returns over the previous five years that are above the lon
…