Part 9: Miscellaneous Section 38: Amendments of the PRIIPs Regulation etc.
This section delegates a power to the FCA to clarify the scope of PRIIPs through their rule-making powers in Part 9A of FSMA. A new Article 4A will be inserted into the PRIIPs Regulation which will allow the FCA to make rules specifying whether particular products or categories of products fall within the scope of the definition of a PRIIP.
	The new Article 4A applies modified sections 137T as to the FCA’s general supplementary powers, 138F as to the requirement to give notice of rules to HM Treasury, 138G regarding rule-making instruments, 138I and 138L as to FCA consultation and 141A regarding the power for HM Treasury to make consequential amendments.
	This will enable the FCA to address existing, and potentially future, ambiguities in relation to certain types of investment product. The definition of a PRIIP will remain unchanged.
	The PRIIPs Regulation obliges PRIIPs manufacturers to include performance scenarios in the KID. The methodology for calculating these scenarios is set out in the PRIIPs RTS.
	Subsection (4) amends Article 8(3) of the PRIIPs Regulation to replace the term ‘performance scenarios and the assumptions made to produce them’ with ‘appropriate information on performance’. The FCA will then be able to amend the RTS to clarify what information should be provided in the KID by virtue of the power given by the Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019, in accordance with Chapter 2A of Part 9A of FSMA.
	This information will not necessarily take the form of performance scenarios.
	Subsections (5) and (6) allow HM Treasury to extend the UCITS exemption, in regulation 32(1) of the PRIIPs Regulation, to a date no later than 31 December 2026.
	UCITS Retail schemes are currently exempted from the requirements of the PRIIPs Regulation until 31 December 2021. Instead, UCITS funds must produce a Key Investor Information Document under requirements of the UCITS Directive which were implemented via FCA rules. At present the Government considers that the current rules for UCITS disclosure are satisfactory.
	Subsections (5) and (6) contain an amendment which delegates a power to HM Treasury to further extend the exemption for UCITS if required, up to a maximum of five years. This will enable HM Treasury to make regulations at a later date to amend the exemption date in the PRIIPs Regulation, if necessary. This amendment will enable HM Treasury to consider the most appropriate timing for the transition of UCITS funds into the PRIIPs regime, or any domestic successor that may result from the planned review of the UK framework for investment product disclosure. It will also allow HM Treasury to provide both UK and EEA UCITS with a transitional period to comply with the PRIIPs Regulation requirements, as amended by subsections (5) and (6) of the measure.