Investment products: 'PRIIPs' rules delayed by one year
On 8 December 2016, the Council adopted a regulation postponing the application date of rules on packaged retail and insurance-based investment products (PRIIPs) by 12 months.
Regulation 1286/2014 will now be applied from 1 January 2018, instead of 31 December 2016 as initially stipulated.
The one-year delay will enable regulatory technical standards to be defined, leaving sufficient time for the industry to adapt to the new rules. This comes after the European Parliament objected to regulatory technical standards that were initially adopted by the Commission.
Regulation 1286/2014 sets out to improve market transparency for retail investors and to boost consumer trust in financial markets.
It is aimed at ensuring that retail investors always receive the information they need to take informed decisions, given that asymmetries of information make both risks and the cost of products difficult to assess or compare. It requires key information documents to be drawn up for all PRIIPs, specifically investment funds and structured deposits, as well as life insurance policies with an investment element.
Parliament's objection
On 14 September 2016, the Parliament objected to regulatory technical standards laid down by the Commission in a delegated regulation. The standards relate to the presentation, content, review and revision of key information documents. They were due to apply from 31 December 2016, the same date as the PRIIPs regulation itself.
As a consequence of the Parliament's objection, the Commission's delegated regulation cannot enter into force. New regulatory technical standards are being prepared.
Regulatory technical standards are prepared by the European supervisory authorities: the European Insurance and Occupational Pensions Authority, the European Banking Authority and the European Securities and Markets Authority.
Adoption
The regulation postponing the application date was adopted without discussion at a meeting of the Employment, Social Policy, Health and Consumer Affairs Council.
The Parliament approved the text at first reading on 1 December 2016.