Members of the European Parliament remain deeply divided over new rules governing packaged retail investment products and plans for the new key information document (KID) that will accompany all PRIPs.
Pervenche Berès, the French MEP leading the process as rapporteur, wants to extend the scope of the legislation to stocks, bonds and bank deposits. Ms Berès said it was essential to broaden the scope of PRIPs legislation to strengthen confidence among small investors in the financial products that they were being sold. She is also pressing for details about the tax treatment of PRIPs to be included in the KID, as well as information about environmental, social and governance (ESG) criteria.
Syed Kamall, a UK Conservative MEP, said he was concerned that the rapporteur’s proposals would prove “unworkable” and that national governments would find it difficult to implement the legislation if it were passed by the European parliament.
Sirpa Pietikäinen, a Finnish member of the EPP, said that extending the scope of PRIPs to stocks could mislead consumers into believing that equities were capital guaranteed products with very little risk.
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