The Federation of European Independent Financial Advisers has stated that it backs Association of International Life Offices calls for a more detailed approach to proposed changes to the Packaged Retail and Insurance-based Investment products (PRIIPs)
The European Council yesterday formally adopted a regulation postponing the application date of rules on PRIIPs by 12 months. As a result of the Regulation 1286/2014 (aka PRIIPs) will now be officially applied from 1 January 2018, instead of 31 December 2016 as initially stipulated.
The one-year delay will enable Regulatory Technical Standards (RTS) to be defined, leaving sufficient time for the industry to adapt to the new rules. This comes, as reported, after the European Parliament objected to the RTS that were initially adopted by the EU Commission.
The regulation postponing the application date was officially adopted without discussion at a meeting of the Employment, Social Policy, Health and Consumer Affairs Council in Brussels yesterday. The EU parliament had approved the text at first reading on 1 December.
As reported yesterday, the Association of International Life Offices expressed concerns that the Commission has missed a number of key details in its recommendations, something that Paul Stanfield, chief executive of the Federation of European Independent Financial Advisers and secretary general of the European Federation of Financial Advisers & Intermediaries, pictured above, agrees with.
Stanfield welcomes that “an element of common sense is now prevailing”, but retains concerns shared by the AILO.
“The RTS were inappropriate in part, unworkable in certain aspects, and definitely not entirely in the interests of consumers,” he said.
“We do have concerns, however, along with consumer groups and other trade associations such as AILO, that the European Commission is trying to apply a “quick fix” to these issues that will fall well short of resolving them or addressing the worries expressed by the European Council and parliament.”
As reported, on 14 September, the parliament objected to the RTS laid down by the EU Commission in a delegated regulation. The standards relate to the presentation, content, review and revision of the KID.
As a consequence of the parliament’s objection, the commission’s delegated regulation cannot enter into force.
New Regulatory technical standards are now prepared by the European Supervisory Authorities: the European Insurance and Occupational Pensions Authority (EIOPA), the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA).