The European Commission sent a letter to the European Supervisory Authorities (ESAs), mentioning the proposed amendments to the draft Regulatory Technical Standards (RTS) rejected by the European Parliament.
The parts rejected by the European Parliament concern the following areas: Multi-option PRIIPs, 4th performance scenario and Comprehension Alert.
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.
In a discussion hosted by the Greens and the European Free Alliance at the European Parliament on the 19th of October, Ugo Bassi (DG FISMA) mentioned a 6/9/12 month legislation delay, and a draft of new Regulatory Technical Standards (RTS).
The idea behind the legislation is to provide enable clear comparability between Investment Options. Ugo Bassi expressed hopes of bridging the above concerns with the idea and having a new, improved draft ready “By February”.
On November 9th the European Commission will discuss the exact delay time, and whether the level 1 legislation should come into force within the current deadline the 31/12/2016.
PRIIPsHub’s CEO, Carsten Mahler, has been featured in the Actuarial Post with an article entitled “Uncertainty surrounding PRIIPs and the imminent challenges”.