As we often mention, the Stock Universe is fluid and subject to change depending on all sorts of things. Mostly user demand, but also the regulatory landscape and operational factors like overly-juicy corporate actions.
The KID issue arises from PRIIPs rather than MiFID II, but needless to say - yes, this does affect UK brokers’ ability to offer ETFs without KIDs to retail clients. They remain in the stock universe notwithstanding because we have always known there is a lead time between the regulation entering force in January and when we will be in a position to offer them. This gives us time to let the compliance dust settle and assess our strategic options for making it happen. Frankly, we really want to offer them, but you guys are correct in identifying that this is an uphill battle short of a major shift in the behaviour of issuers, which hasn’t materialised since January. This is disappointing, but we are continuing to try to find a way.
We want to do things differently, and we don’t plan on giving up easy. But, apologies if their inclusion to the Stock Universe created expectation.