EUROPEAN UNION: Parliament Returns Draft PRIIPs Law to Commission for Revision

Wednesday September 14 2016

Draft legislation on packaged retail and insurance-based investment products (PRIIPs) was rejected by MEPs on 14th September as so “flawed and misleading” that it could result in retail investors losing money. The legislation will be returned to the European Commission for revision.

MEPs passed a resolution calling for changes to legislation on PRIIPs – a market worth up to €10 trillion in Europe – by 602 votes to 4, with 12 abstentions.

The European Parliament backed the view of its Economic and Monetary Affairs Committee that proposed regulatory technical standards (RTS), which investment providers must meet to provide greater transparency and clarity to investors, are inadequate.

The Commission will now have to propose new RTS for implementing the PRIIPs legislation which is due to come into force on 31 December 2016.

Click on the above link for the full announcement.