The European Parliament decided not to object to the
Commission delegated regulation of 8 March 2017 supplementing
Regulation (EU) No 1286/2014 of the European Parliament and of the
Council on key information documents for packaged retail and
insurance-based investment products (PRIIPs) by laying down
regulatory technical standards with regard to the presentation,
content, review and revision of key information documents and the
conditions for fulfilling the requirement to provide such
documents.
In its resolution
of 14 September 2016, Parliament objected to the Commission
delegated regulation of 30 June 2016 supplementing Regulation
(EU) No 1286/2014 and called on the Commission to submit a
revised delegated regulation which addressed its concerns expressed
on:
- the unclear treatment of multi-option
PRIIPS,
- the insufficient representation of the fact that
retail investors may also lose money in adverse scenarios
concerning certain products,
- the lack of detailed guidance as regards the use of
the ‘comprehension alert’.
Parliament noted that the provisions of the revised
delegated regulation are consistent with the objectives
expressed by Parliament:
- the revised delegated regulation clarifies that
manufacturers of multi-option PRIIPs which include underlying
investment options that are Undertakings for Collective Investments
in Transferable Securities (UCITS) or non-UCITS funds would not
need to provide all information requested under PRIIPs and will be
authorised to use UCITS key investor information documents
instead as an appropriate means of providing retail investors with
more detailed pre-contractual information;
- an additional fourth performance scenario has been
included in the revised delegated regulation; this ‘stress
scenario’ is intended to set out significant unfavourable
impacts of the products that are not covered in the existing
‘unfavourable scenario’;
- the use of the comprehension alert was
clarified by including in its scope of application those PRIIPs
that are considered ‘complex products’;
- the proposed ‘What is this product’ section
of the key information document was altered and the section on
‘What are the risks and what could I get in return’
includes a presentation of administrative costs in relation
to the biometric components of insurance-based investment
products.
In light of these considerations, Parliament declared
that it had no objections to the revised delegated
regulation.