European Council: 'PRIIPs' rules delayed by one year

The Council adopted a regulation postponing the application date of rules on packaged retail and insurance-based investment products (PRIIPs) by 12 months.

Regulation 1286/2014 will now be applied from 1 January 2018, instead of 31 December 2016 as initially stipulated. The one-year delay will enable regulatory technical standards to be defined, leaving sufficient time for the industry to adapt to the new rules. This comes after the European Parliament objected to regulatory technical standards that were initially adopted by the Commission.

It is aimed at ensuring that retail investors always receive the information they need to take informed decisions, given that asymmetries of information make both risks and the cost of products difficult to assess or compare. It requires key information documents to be drawn up for all PRIIPs, specifically investment funds and structured deposits, as well as life insurance policies with an investment element.

Source: European Council