The European Commission (EC) delays PRIIPs for 1 year
The 9th of November the EC announced PRIIPs implementation date to be moved to the 1st of January 2018. The delay will give the industry some time to adapt to the changes. The legislators will have time to fix the issues expressed by ECON, the parliament, and the industry.
The Commissioners were pleased to see the regulation delayed:
"PRIIPS is an important piece of legislation that will provide consumers with accessible and transparent information on complex investment products. To ensure legal certainty and a smooth implementation for consumers we are today proposing to extend the date of application by one year, the extension should be limited to one year only and we are glad that the European Parliament and the Council are supportive of the view that the substance of the rules should not be re-opened." - said Valdis Dombrovskis Vice-President for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services, and the Capital Markets Union.
"The objective of PRIIPs is to increase protection of retail investors and restore consumer trust in the financial services industry. Furthermore, greater transparency and harmonisation will benefit the internal market in financial services by creating a level playing field among different products and distribution channels. However, we have taken note of the concerns of the European Parliament and the Council and are therefore proposing to postpone the date of application." said Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness.
The European Commission will work closely with the European Supervisory Authorities (ESAs), to amend the issues of the RTS. Both organisations aim to have an updated draft in the first half of 2017.