4.10.1 Proposed approach for the most commonly selected investment options
All respondents from the financial industry were critical of this proposal, which they argued would be costly to implement and would not bring benefits in terms of consumer understanding. Some of the challenges raised included:
- The approach is not meaningful in the case of products where the investment selection is left entirely to the retail investor;
- The proposal would introduce a new type of document in addition to the generic KID and specific information;
- The (four) options selected are likely to be taken as recommended options;
- It is not clear how to apply some aspects of the proposals in practice, such as how the most commonly selected options could at the same time reflect the diversity of investment objectives;
- It will increase the number of KID, and this was a particular concern where the PRIIP manufacturer had already decided to prepare several KIDs for the same product, such as reflecting di
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