PRIIPs: Implementation Delay Confirmed

Of relevance to:
Most firms providing investments or investment services to retail investors, including AIFMs, UCITS Management Companies and the Authorised Fund Managers of NURS

As advised in Regulatory Roundup 80, the European Parliament rejected a proposed Delegated Regulation which was a key part of the Packaged Retail and Insurance-based Investment Products Regulation (“PRIIPs”).

The core provision behind PRIIPs – which applies to both PRIIP ‘manufacturers’ and to those that advise on or sell such products – is the need provide a Key information Document (“KID”) “before a PRIIP is made available to retail investors”.

The regulatory technical standards (“RTS”) on the content, presentation etc. of the KID were contained in the (rejected) Delegated Regulation and its associated Annexes. Given that PRIIPs applies from 31 December 2016 the rejection of the Delegated Regulation so late in the day causes obvious problems for firms. Whilst PRIIPs on its own is clear, the RTS is essential for the format and methodology used to compile the KID.

Fortunately the European Commission has proposed an extension to the date of application of the PRIIPs Regulation by one year.

The European Commission press release informs us that “the revised PRIIPS framework should be in place during the first half of 2017 and apply as of 1 January 2018”.