View more on these topics

European Commission confirms Priips delay until January 2018


The European Commission has officially announced today the 12-month delay of the introduction of its Priips regulation.

As revealed by Money Marketing in October, the EC had decided to delay the introduction of Priips, or packaged retail and insurance-based investments, by one year to 2018, instead of January next year.

The EC met on 27 October with a Council Working Group to discuss the delay, it is understood, as well as yesterday, when it held discussions between MEPs to finalise an agreement over the delay, as confirmed by German and Green MEP Sven Giegold in a blog post.

Priips, which will apply to a wide range of firms, including banks, insurers, and investment managers, aims to extend Mifid II standards on consumer protection to insurance-based investment products.

The decision comes after months of debates, which culminated in the vote from the European Parliament to reject the current regulatory technical standards for the implementation of Priips’ Key Information Document.

A group of asset managers, including BlackRock and Schroders, have also written to the Commission asking to it rethink about excluding past performance data within the KIDs.

The EC says the year extension is proposed “exceptionally in the interest of ensuring a smooth implementation for European consumers and to ensure legal certainty for the sector.”

EC vice-president Valdis Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union says: “Priips is an important piece of legislation that will provide consumers with accessible and transparent information on complex investment products. To ensure legal certainty and a smooth implementation for consumers we are today proposing to extend the date of application by one year.

“The extension should be limited to one year only and we are glad that the European Parliament and the Council are supportive of the view that the substance of the rules should not be re-opened.”

Next steps

The Commission expects the revised Priips framework to be in place during the first half of 2017 and apply as of 1 January 2018.

It has asked the European Supervisory Agencies to make “targeted changes” in certain areas of the RTS such as multi-option products, performance scenarios, comprehension alert and presentation of insurance related costs.

The Commission is also inviting the ESAs to develop guidance on the application of credit risk mitigation factors under the RTS for insurers. The guidance needs to be in line with the relevant provisions of the RTS and not alter their substance, the EC says.

The ESAs will now have six weeks to resubmit the revised rules to the Commission.

It will have then to be adopted by the Commission and be subject to scrutiny by the  Parliament and the Council.

Earlier in November, regulatory experts have already expressed concerns over the next steps providers will need to take before Priips’ implementation date kicks off.

MEP Syed Kamall, who is among the leaders of the objection process on the re-draft of the RTS within the legislation, previously told Money Marketing sister title Fund Strategy delaying Priips by one year to 2018 might not be enough to guarantee clarity on its drafted regulatory technical standards.

Brown Brothers Harriman head of regulatory intelligence Sean Tuffy adds that “obviously” Priips delay is not a surprise, but says: “More than anything, I think the industry will appreciate finally having clarity over the implementation timeline.  I actually think it makes sense to align Priips and MIFID II, as the are both key to  EU policymakers’  goal  of increasing  investor protection.

“The two were originally slated to go live at the same time, until the MiFIDII date was pushed out last year.  That said, it does mean that asset managers will have a busy year ahead implementing to big pieces of regulatory change.”


Fears grow over how EU will redraft Priips rules

The investment industry has been bought some time to comply with new European disclosure rules, but there remains a lack of clarity around how the rules will be redrafted and the ultimate impact on investment advice. Money Marketing revealed last week the European Commission has decided to delay the introduction of regulation for Priips, or […]


‘Priips delay is not enough’ says MEP

Delaying Priips by one year to 2018 might not be enough to guarantee clarity on its drafted regulatory technical standards, says Syed Kamall, the European Conservatives and Reformists chairman and London MEP. Kamall, who is among the leaders of the objection process on the re-draft of the RTS within the legislation, told Money Marketing sister title Fund […]


EU to delay Priips regulation until 2018

The European Commission has decided to delay the introduction of its Priips regulation by one year, Money Marketing understands. The European Commission is understood to have announced a 12-month delay of the directive today in a meeting with a Council Working Group. The Commission will publicly announce the decision on 9 November, despite previously announcing […]

Brexit: what to expect in the aftermath

James Dowey, Chief economist & CIO In these very early stages following the “Leave” win any prognosis is by its nature highly tentative. It will be weeks before we are able to measure the acute impact of the result on the UK economy, and there are clearly no close historical parallels on which to base […]


Lifetime Isa – how it works

According to George Osborne “people like Isas – because they’re simple”. Fiona Tait is not convinced… Contributions & bonuses What he said: “From April 2017, anyone under the age of 40 will be able to open a Lifetime Isa and save up to £4,000 each year. And for every £4 you save, the Government will […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm