The European Supervisory Authorities (EBA, EIOPA and ESMA) released a joint consultation paper on the minimum requirements for manufacturers of Packaged Retail and Insurance-based Investment Products (PRIIPs) with Environmental or Social Objectives (EOS). The ESAs have been requested by the European Commission earlier to provide Technical Advice on the content of the delegated acts concerning the procedures used to determine whether a PRIIP is targeting specific environmental or social objectives.
For this type of PRIIPs, the manufacturers need to demonstrate they have the right governance systems in place to ensure the EOS objectives are met.
Stakeholders have the opportunity to provide feedback until 23 March 2017. ESAs are to submit the Technical Advice to the European Commission by 30 April 2017.
In a letter sent to the European Commission (EC) today, the European Supervisory Authorities (ESAs) mentioned that "the three ESAs are not in a position to provide an agreed opinion on the amended draft RTS".
After discussions among the ESAs and presenting an opinion to the three Boards of Supervisors, the opinion was adopted by EBA and ESMA Boards, but not by the EIOPA Board. However, there was general consensus of all three Boards that the European Commission's proposed amendments to the performance scenarios might be misleading.
The letter contains more background and also a suggestion in regards to the methodology to be used in the RTS.
Members of the European Parliament (MEPs) have voted this morning, by 561 votes to 9 with 75 abstentions, to delay the implementation of the Key Investor Document (KID).
MEPs have commented that European Commission's proposed methodology for the Regulatory Technical Standards is “flawed and misleading”.
The implementation date for the KID was postponed to 1 January 2018, which gives more time for the European Commission to propose alternative standards for the KID.