# The Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations make transitional amendments to assimilated law repealed by section 1(1) of, and Schedule 1 to, the Financial Services and Markets Act 2023 (c. 29), subject to commencement, relating to packaged retail and insurance-based investment products. The legislation being amended is:
Article 2 (products to which the Regulation does not apply) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (“PRIIPs Regulation”), and
Articles 2 (definitions), 50 (information on costs and associated charges) and 51 (information provided in relation to units in collective investment undertaking or PRIIPs) of Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive (“Commission Delegated Regulation (EU) 2017/565”).
Regulation 2 adds closed-ended investment companies that are UK-listed to the list of products excluded from the PRIIPs Regulation and inserts an associated definition. A closed-ended investment company is a public limited company which invests pooled funds in assets seeking to spread investment risk and generate profits for its shareholders. A closed-ended investment company is UK-listed where its shares are admitted to trading on a UK regulated market or a UK multilateral trading facility. Closed-ended investment companies that are UK-listed will no longer be subject to the requirements of the PRIIPs Regulation. Manufacturers, advisors and sellers of shares in a closed-ended investment company that is UK-listed will no longer be required to produce the key information document.
Regulation 3 inserts the definition of a “closed-ended investment company that is UK-listed” into Commission Delegated Regulation (EU) 2017/565. It also excludes costs relating to a closed-ended investment company that is UK-listed from requirements on firms in Commission Delegated Regulation (EU) 2017/565 to aggregate costs disclosed to clients and to provide all other information on costs and charges. Closed-ended investment companies that are UK-listed, and firms investing in them, will no longer be required to aggregate, or otherwise report, the cost of manufacturing or managing shares in closed-ended investment companies that are UK-listed in this way.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment of the effect of this instrument is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/ukdsi/2024/9780348263961/note (the official version)
Page: https://openlegislation.uk/draft-packaged-retail-and-insurance-based-investment-products-retail-disclosure-amendment-regulations-2024/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.