Commission extends the application date of the PRIIPs Regulation by one year
A press release has been issued proposing an extension to the date of application of the PRIIPs regulation.
Regulatory Newsflash | 10 November 2016
- Proposed Regulation containing the amendment to PRIIPs necessary for the delay
- PRIIPs Regulatory Technical Standards: Next steps
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Proposed Regulation containing the amendment to PRIIPs necessary for the delay
The Commission published a press release proposing an extension to the date of application of the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products (PRIIPs) yesterday. The delay gives issuers and distributors of PRIIPs products until 1 January 2018 to put the provisions in place.
To become applicable, the above delay will need to be formally approved by the European Parliament and Council of the European Union and published in the Official Journal of the European Union. As the original date of application of PRIIPs (i.e. 1 January 2017) is fast approaching, the Parliament and the Council have indicated that they support the view that discussions on the substance of the rules should not be re-opened. This should help ensure a timely approval and entry into force of the delay. To this end, the proposed Regulation containing the amendment to PRIIPs necessary for the delay also foresees that the extension of the data of application will enter into force on the day after publication in the Official Journal.
PRIIPs Regulatory Technical Standards: Next steps
The European Commission is working closely with the three European Supervisory Authorities (ESAs) to resubmit the revised Regulatory Technical Standards (RTS). In particular the Commission has asked the ESAs to make targeted changes in certain areas (i.e. multi-option products, performance scenarios, comprehension alert and presentation of insurance related costs), and to develop guidance on the practical application of credit risk mitigation factors under the RTS for insurers.
The ESAs will now have six weeks to resubmit the revised RTS to the Commission. It will have to be adopted by the Commission and then be subject to scrutiny by the European Parliament and the Council. The commission expects that the revised PRIIPs framework should be in place during the first half of 2017 and apply as of 1 January 2018.