European Parliament delays regulatory technical standards for Priips
Written by Adam Cadle
The European Parliament has delayed the regulatory technical standards for Priips.
Objections were mounting over the way the Priips rules have been proposed by the European Commission including providing details of past fund performance and a possible unlevel playing field between insurance-based products and other retail investments.
MEPs supported by 55 votes to 0, with 3 abstentions, a resolution which called for changes to the legislation covering packaged retail and insurance-based investment products - a market worth up to €10trn in Europe - which consumers typically tap into when saving for a certain amount of money such as buying a house or paying for their children’s education.
“We believe that this is the best course for the industry," Silverfinch managing director John Dowdall said.
"The delay to the implementation of Priips is something that the retail sector, investment managers, and manufacturers will welcome as an honest realisation that what had been set out was inadequate. With UCITS KIIDs, it took the industry over a year to implement, so a potential delay will allow the industry to prepare and to get Pripps right.
“The delay provides a welcome breathing space for businesses to assess how they can meet the new rules, but it’s even more important now to press ahead with the steps to be PriipsPs compliant. Many in the industry had feared that the short timeframe between now and January meant that manufacturers would reduce the number of investments on offer due to the data collection burden. That outcome that would have disadvantaged both the investors and the manufacturers – an ironic result from legislation designed to help the retail public. The extended timeframe will hopefully allow those who were in that situation to keep a full range of products.
“The onus is now on the European Commission to address the understandable concerns of the Economic and Monetary Affairs Committee, and ensure that these new rules will be implemented fairly and efficiently across all markets.”