Commenting on the preliminary agreement between the Romanian Presidency and the European Parliament, EFAMA Director General Tanguy van de Werve said: “We will be reviewing the details of the preliminary agreement once they are made public. There may be aspects which we hope will still be appropriately addressed in technical trilogue meetings.”
He continues: “However – and subject to confirmation- we do very much welcome that the agreement includes calling for an extension of two years (until December 2021) of the UCITS exemption in the PRIIPs Regulation. This is an acknowledgement that the current flaws of the PRIIPs KID, including the presentation of performance and transaction cost methodologies, need to be corrected appropriately, and is by far the best outcome from an investor protection perspective”.
Besides the PRIIPs-related amendments, EFAMA also welcomes the removal of numerical thresholds governing the de-notification of funds in host EU jurisdictions, where these risked building up new barriers to cross-border distribution behind wrongly held investor protection concerns. Investor protection standards for those choosing to remain invested post- de-notification are by no means affected by the end of the marketing regime.
As shown by the important rise of cross-border funds in Europe over the last decade, investment funds are probably one of the best examples to date of a generally well-functioning EU single market in the area of financial services. Efforts to tackle remaining barriers for the cross-border distribution of investment funds will allow asset managers to provide better solutions and more choice to our clients.
EFAMA looks forward to the further technical work before the European Parliament and the Council can formally adopt the final texts.
© EFAMA - European Fund and Asset Management Association
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