Chris Cummings, Chief Executive of the IA, said that the additional time should mean that regulators and legislators are able to take a step back and design a PRIIP KID that provides consumers with better disclosure than the current draft rules permit.
Following the European Commission's announcement today surrounding the Packaged Retail Insurance-based Investment Products regulation, Mr Cummings said:"We welcome the Commission's decision to delay the PRIIPs date of implementation by a year. The draft rules, that were rejected by the European Parliament in September, would have led to extremely flawed and misleading retail investor disclosure.”
"It is now time to get it right, and for the Commission to amend the presentation of costs and charges and improve the performance disclosure by adding historic performance alongside future scenarios. It is essential that our industry not only has legal certainty as to what will be needed to produce a PRIIP KID, but also sufficient time to put the necessary systems in place. Therefore, we urge the Commission to come back with final rules in early 2017."
Full press release
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