Draft regulatory technical standards aiming to provide a framework to packaged retail investment and insurance-based products (PRIIPs) have been rejected by the members of the European Parliament.
The draft regulation, which has faced several critics across Europe, has been considered by MEPs so “flawed and misleading” it could lead to retail investors losing money instead of protecting them.
PRIIPs’ RTS have been returned to the EU Commission for revision. MEPs passed a resolution calling for changes to legislation on PRIIPs by 602 votes to 4, with 12 abstentions.
The vote of the European Parliament supports that of its economic and monetary affairs committee that proposed RTS are inadequate.
The institution specified the European Commission will now have to propose new RTS for implementing the PRIIPs legislation which is due to come into force on 31 December.