Tag Archives: PRIIPS
ESMA speaks on fund priorities
Steven Maijoor has spoken on ESMA’s priorities in fund regulation. He focused on how consumer investments progress over time, and the role of costs, looking at ESMA’s costs and performance report on retail investment products. He then spoke on the relevance of cost in investment services regulation more widely and the importance of cost disclosure […]
FCA calls for costs and charges disclosure improvements
FCA has issued a set of papers on costs and charges disclosures. its feedback statement on firms’ experiences of the PRIIPs requirements concludes that firms find certain issues, in particular relating to summary risk indicators and performance scenarios, hard to deal with, and that some KIDs display transaction costs that are unlikely to be a […]
Keep UCITS KIID for MOPs for longer, says industry
Insurance Europe and EFAMA are calling for an extension to the date on which PRIIPs KIDS must be produced for multi-option products. Currently, where a UCITS KIID has been produced for underlying funds, insurers and asset managers can produce a generic PRIIPs KID for the overall product, backed up with the specific KIIDs. But they are allowed […]
ESMA publishes KID amendment advice
ESMA has published the advice it received from the Securities and Markets Stakeholder Group on amending the PRIIPs KID. The group fully supports the principle of the KID but is disappointed that there are proposals for change so soon after firms spend significant resource to implement the original requirements and also that the consultation period […]
Treasury announces more details on its approach to onshoring financial services legislation
On 22 November 2018, Treasury announced it was developing a draft SI for MAR. It proposes that the SI will address: the scope of the regulation; transaction reporting; notification requirements; transfer of functions; and supervisory cooperation and information sharing Treasury also published the Packaged Retail and Insurance-based Investment Products (Amendment) (EU Exit) Regulations 2019; a […]
ESAs consult on PRIIPs KID changes
The ESAs are consulting on proposed amendments to the PRIIPs KID. The consultation follows the ESAs’ letter to the Commission on developing guidance on information on investment funds. It also noted the need to make targeted amendments to the PRIIPs delegated Regulation to apply the PRIIPs KID requirements appropriately to UCITS and relevant non-UCITS funds, […]
Industry body calls for review of PRIIPs Regulation
Following the FCA’s Call for Input into the implementation of the PRIIPs Regulation, the Personal Investment Management and Financial Advice Association (PIMFA) has commented that it agrees with concerns about the practical operation and the detailed KID requirements of the regime. In particular, PIMFA has noted that there is a suggestion that UCITS and other […]
FCA seeks views on PRIIPs experience
FCA has opened a Call for Input to get firms’ and consumers’ initial experiences of the PRIIPs requirements. It welcomes comments generally, but particularly in respect of: determining whether a product is within or out of scope; and the practical aspects of cost and risk disclosure requirements. The Call for Input usefully summarises the various […]
ESAs update KID FAQs
The ESAs have published some further guidance on KIDs under the PRIIPS Regulation. The additions to the existing guidance provide some additional FAQs and updates to the flow diagrams for risk and reward calculations. New questions include confirmation that a KID must be published on the public section of the manufacturer’s website, and guidance on […]
FCA speaks on asset management
Andrew Bailey has given a regulatory perspective on asset management. His speech considered: market-wide risks: he looked at the growth in the asset management sector and particularly the increase in proportionate growth of the asset management sector over others. open-ended funds: he considered the risks of funds offering daily redemption in illiquid assets which also […]
FCA publishes views on PRIIPs performance scenario concerns
FCA has published a statement following concerns raised about the performance scenarios in the PRIIPs KID. Some firms have noted that occasionally this information may appear to optimistic and risk misleading consumers. FCA says that where a manufacturer is worried the scenarios in their KID are too optimistic, it may provide explanatory materials to put […]
FCA updates Enforcement Guide as PRIIPs Regulation comes into force
The FCA has published a legislative instrument that amends its Enforcement Guide to reflect the implementation of the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The changes to the Enforcement Guide outline the FCA’s approach to enforcement of the PRIIPs Regulation, and came into force on 4 January 2018.
EIOPA publishes Opinion on monetary incentives and remuneration between asset managers and insurers
EIOPA has published an Opinion, addressed to national competent authorities (NCAs), which focuses on consumer protection issues related to monetary incentives and remuneration between providers of asset management services and insurance undertakings. While not an issue in all member states, EIOPA has found that unmitigated conflicts of interest and the management of unit-linked policies by insurers […]
Treasury makes PRIIPs Regulations
Treasury has made the PRIIPs Regulations 2017, which will come into force on 1 January 2018. The Regulations: designate FCA as the competent authority for the PRIIPs Regulation gives FCA powers where a person has infringed the PRIIPs requirements and sets out the extent of those powers and the procedure for using them provide for […]
ESAs update PRIIPs FAQs
The ESAs have updated the FAQs on the PRIIPs KID to include a number of new questions, including guidance on: confirming that the categorisation of a retail investor should follow the MiFID 2 definition and not take account of any national categories of “semi-professional” investor or similar; how to categorise credit-linked notes in terms of their […]
EIOPA publishes guidelines for “execution-only” sales of IBIPs under IDD
Further to a public consultation, EIOPA has published a final report on its guidelines for insurance based investment products (IBIPs) under IDD that incorporate a structure which makes it difficult to understand the risks involved. These guidelines apply to execution-only sales under Article 30(3) of IDD. One of the conditions specified in Article 30(3) of […]
Commission asks ESAs for retail product evaluation
The Commission has published its formal request to the ESAs to report to it on the cost and past performance of the main categories of retail investment, insurance and pension products. It notes the reporting should be based on what is required under key EU legislation, and appreciates the amount of work is such that […]
FCA consults on miscellaneous changes
FCA’s latest Quarterly Consultation Paper covers: amendments to FEES in respect of fees when firms apply for a VOP for provision of payment initiation and account services. FCA needs to charge fees as it has realised it will need to apply more resource to these applications than it does to standard VOPs. DEPP and EG in respect […]
ESAs publish further Q&As on the Key Information Document for PRIIPs
Further guidance on the Key Information Document (KID) under PRIIPs was published by ESAs today in the form of questions and answers (Q&A). The Q&A includes additional questions and answers to those published on 4 July 2017 as well as diagrams to explain the risk and rewards calculations required to prepare the KID. The updated […]
Minor amendment to PRIIPS RTS published in the Official Journal
Background A corrigendum to Commission Delegated Regulation (EU) 2017/653 of 8 March 2017 supplementing Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) by laying down regulatory technical standards (RTS) with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling […]
ESAs advise the Commission on PRIIPs with environmental or social objectives
The European Supervisory Authorities (ESAs) have submitted their technical advice to the European Commission (the Commission) to set minimum requirements, which manufacturers of PRIIPs with environmental or social (EOS PRIIPs) objectives should comply with to ensure their products meet the retail investors’ needs. The ESAs addressed four areas: (i) specific environmental or social objectives, (ii) disclosure of specific investment […]
EIOPA creates webpage on product intervention powers under PRIIPs regulation
The webpage is available here. Product intervention powers will come into force as of 1 January 2018.
Commission publishes PRIIPs KID guidelines
The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although not in much detail), are on the derogation for the need for a single KIDfor a multi-option product, the scope of the Regulation and territorial […]
ESAs answer questions on the KID requirements for PRIIPs
The ESAs have published the first set of question and answers (Q&A) related to the KID requirements for PRIIPs. The purpose of the Q&A is to promote a common supervisory approach to the implementation of the KID. Stakeholders are invited to submit new questions and the ESAs will continue to answer further questions and will […]
Insurance Europe publishes PRIIPs information exchange templates
Insurance Europe has published the following templates in relation to the PRIIPS regulation: The European PRIIPs template, which includes the minimum data necessary for insurers to produce a KID; and The ‘Comfort’ template, which includes more data, but delivery will depend on ad hoc bilateral agreements between insurers and asset managers. The purpose of the templates […]
EIOPA publishes 2016 annual report
EIOPA has published its annual report which reviews its mandate and programme of work during 2016. Highlights of what EIOPA considers to be its top achievements in 2016 include: Developments of the KID for PRIIPs. EIOPA’s readiness for Solvency II reporting. EIOPA Insurance Stress Test 2016. Launch of an EU-wide thematic review of market conduct among […]
ESMA publishes annual report
ESMA’s annual report for 2016 focusses on its activities in: assessing risks to investors, markets and stability; creating a single rulebook; promoting supervisory convergence; and supervising credit rating agencies and trade repositories. The narrative to the report looks at its work with the other ESAs, latterly on PRIIPs and work to come on transparency on […]
FCA updates on PRIIPs
FCA has updated its website with examples of products it considers will, and will not, be PRIIPs, and explaining the duties of manufacturers, distributors and advisers in relation to them.
FCA makes PRIIPs disclosure rules
FCA has made the rules that will change disclosure requirements on application of the PRIIPs Regulation, which should be from 1 January 2018. FCA has provided as much clarity and certainty as it can, to help firms prepare for the changes. The paper includes feedback on FCA’s consultation, and guidance on whether certain products will […]
PRIIPS RTS in OJEU
The RTS on the presentation, content, review and revision of the PRIIPs KID have been published in the OJEU and will take effect from 2 May.
EP agrees PRIIPs KID RTS
The European Parliament has published its decision not to object to the draft revised RTS on presentation, content, review and revision of the KID for PRIIPs.
Commission adopts PRIIPs delegated act
The European Commission has finally adopted the delegated Regulation on RTS under the PRIIPs Regulation, specifying the presentation, content and format of the PRIIPs KID, the methodology for presenting risk and reward, the conditions for reviewing the KID and how to comply with the requirement to provide it to retail investors. The Commission originally adopted […]
FCA updates PRIIPs timetable
FCA has announced it will publish its final rules on disclosure requirements to reflect the PRIIPS Regulation during the first part of 2017, and expect them to take effect from January 2018.
Commission to delay PRIIPs
The European Commission has proposed to delay the implementation date of the PRIIPs Regulation by one year to 1 January 2018. The proposal follows the European Parliament’s rejection of the RTS to be made under the Regulation. The Commission said it thinks the Regulation is clear enough by itself but has agreed it would be […]
PRIIPs delegated regulation regarding product intervention published in OJ
The Commission Delegated Regulation (EU) 2016/1904 supplementing the PRIIPs Regulation was published in the Official Journal on 29 October 2016. Under the PRIIPs Regulation, national competent authorities and EIOPA have intervention powers to intervene in the marketing, distribution or sale of insurance-based investment products, financial activities or practices. This Delegated Regulation sets out a list […]
ECON rejects PRIIPS RTS
ECON has unanimously rejected the Commission’s draft KID for PRIIPS. It said much of the proposed content contained flaws, and could lead investors to think an investment would more profitable than was likely. There is a now a significant risk that the PRIIPS Regulation will have to take effect (at the end of the year) […]