Next Thursday (29 September) has been set as the deadline for the council of the EU to vote on the request for a one year extension to the proposed introduction packaged retail investment and insurance-based products (PRIIPs).
Yesterday afternoon, a statement of intent was issued from the Council of the EU, on behalf of 24 member states, calling for a one year delay in the date for application for implementation of the PRIIPs regulation.
And today a spokesperson for the European Parliament confirmed to International Investment that the call for an extension is now expected to be voted on by the Council on 29 September. They then have a short time to make a proposal to request a delay to the implementation PRIIPs to present to the European Parliament to vote upon.
This move could conflict with efforts undertaken by departments within the EU trying to stick with the current PRIIPs timescale. It is still planned that the PRIIPs legislation will come into force on 31 December, despite the recent landmark rejection, as reported, of the regulatory technical standards (RTS) for PRIIPs.
As reported, the European Commission is still looking to get a new RTS revised and agreed upon in time to meet the deadline. The PRIIPs RTS rejection has been seen as an embarrassment for the EU and it was hoped in some quarters that the documentation could be quickly re-written and approved before the 31 December deadline.
Push for New Year’s Eve release?
But with this call by 24 EU member states for a delay set to be voted on next Thursday, this could overturn any attempts to keep PRIIPs on track for it’s proposed New Year’s Eve release.
Last week, John Dowdall, managing director at data specialists and PRIIPs analysts Silverfinch, said that he had heard from “sources in the EU Commission” that they intended to have a revised draft ready for another parliament vote in October. And he warned the industry to be ready for December nonetheless.
“While the level one requirements have been agreed, it is the date of implementation which is still to be confirmed – this will also be decided at the next parliamentary vote,” he said. “We strongly support this rejection of the existing RTS and look forward to the revised standards to ensure that these are better fit for purpose.
“However, it is important for the industry to realise that the PRIIPs regulation has not yet been delayed and so we urge asset managers and insurers to continue to push ahead with their PRIIPs preparation until the EU Commission and Rapporteur Pervenche Berès reach an agreement on the PRIIPs deadline.”
With yesterday’s call for a delay it is not known whether or not the plans revised draft of the RTS documents ready for another parliament vote in October will now take place.
24 member states
The statement requesting the 12 months delay was supported by 24 member states: Germany, the United Kingdom, France, Austria, Croatia, Sweden, Ireland, Slovenia, Lithuania, Cyprus, Romania, Finland, Denmark, Portugal, the Netherlands, Malta, Estonia, Hungary, Greece, Belgium, Bulgaria, Latvia, Czech Republic and Slovakia.
It read: “We believe that it is important PRIIPs regulation is fully applied and it is essential in order to meet the needs of EU citizens for products with which to build up savings and investments, whilst also contributing to efficient capital markets that help fund EU economic growth.
“Also in light of the rejection of the PRIIPs RTS by the EP, we call on the Commission to consider postponing only the application date of the PRIIPs regulation (thus without any change to any other provision of the level 1 Regulation).
‘Postponement of the application date’
“In our view, the Commission should propose a postponement of the application date by 12 months in order to provide sufficient time to clarify open questions and reach the goals of the PRIIPs regulation,” the statement concluded.