Euro Prip rules may pose problems for UK firms
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Experts have warned that the UK retail investment industry may incur additional costs once the European Commission outlines its measures on packaged retail investment products.
Last year, the EC announced it was working to improve product disclosures and sales processes for products with an element of packaging such as investment funds, insurance-based investments and the various types of structured products.
Law firm CMS Cameron McKenna partner Simon Morris and solicitor Gemma Jones believe the EC’s work on Prips could result in more work for the industry after the retail distribution review. They say: “There is the potential that the UK retail investment industry will have to devote the resources and incur the costs required to adapt in advance of the 2012 RDR deadline but may then have to devote further resources to adapt further once the Prip requirements are known, potentially leading to regulatory fatigue, additional costs and consumer confusion.”
Zurich UK Life head of government affairs Matthew Connell says: “If Prips introduce different rules on transparency and disclosure for adviser-charging for the banks and independent brokers, that might upset the level playing field the FSA is trying to create in the UK.”
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