The Commission has just proposed an extension for the date of application of the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs).
The Commission and a Council Working Group agreed in a meeting on Wednesday morning 9 November 2016 to delay the implementation of the PRIIPs Regulation, following discussions earlier this week. According to the press release, the one-year extension is being proposed exceptionally in the interest of ensuring a smooth implementation for European consumers and to ensure legal certainty for the sector.
The PRIIPs Regulation aims to improve the quality of information provided to consumers by introducing a standardised factsheet, known as a Key Information Document (KID). The KID is a document no longer than three pages of jargon-free language that should enable consumers to compare the products’ potential future performance and total costs.
The decision for delay was expected. After months of debates, the European Parliament rejected the Regulatory Technical Standards (RTS) related to the presentation and content of the KID. While the PRIIPs Regulation is directly applicable on its own, the RTS on KIDs are important for the benefit of having KIDs that are more easily comparable and standardised.
The delay gives issuers and distributors of PRIIPs products until 1 January 2018 to put the provisions in place, which means it will be aligned with the MiFID II application date that has also recently been postponed.
- To read the Commission’s press release, click here
- To read the PRIIPs Regulation (EU) 1286/2014, click here
In case of any questions on this subject, do not hesitate to contact Marleen Mouton or Géraldine d’Argembeau.