Tuesday May 30 2023

News Source: Fund Regulation

Focus: General - Fund Regulation

Type: General

Country: European Union




European Commission published a proposal for amending Regulation (EU) No 1286/2014 as regards the modernisation of the key information document.

This proposal amends Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (‘PRIIPs’). The entry into force of the PRIIPs Regulation and the Commission Delegated Regulation (EU) 2017/653 on 1 January 2018 has helped improve and standardise the information provided to retail investors. This has made it easier for investors to understand key features of a full range of investment products and to compare different products including those of different product type (such as insurance-based investment products, investment funds or structured deposits). As of January 2023, PRIIPs started to apply to investment funds under the scope of Directive 2009/65/EC on undertakings for collective investment in transferable securities (the UCITS directive), as the previous exemption had ceased to apply. This has further increased the consistency of disclosures across retail investment products.

This proposal for targeted amendments to the PRIIPs legal framework is included in the EU Retail investment strategy, in line with Action 8 of the September 2020 CMU action plan. Regarding disclosures, the EU retail investment strategy aims to improve information for investors and their ability to take well-informed investment decisions. To that end, this proposal aims to adapt disclosures to the digital environment and to the evolving needs of retail investors, and to provide further clarity on the scope of PRIIPs with regards to corporate bonds with make-whole clauses and immediate annuities. This initiative is not part of the Regulatory Fitness programme (REFIT).

Regulation (EU) No 1286/2014 to be amended.

The list of amendments is available on the proposal.

Click on the above link for further information.