EU member states have backed a 12-month delay to the Priips implementation date as regulatory experts argue the European Commission should not rush in redrafting the rules.
Yesterday 23 out of 28 EU members, including the UK and Germany, asked the Commission to delay the implementation of Priips after draft rules were rejected earlier this month.
Previous objections included disclosure standards on past performance and how different providers would be treated under the rules.
Member states say delaying implementation by a year would give sufficient time to provide clearer information of the regulation’s scope.
Brown Brother Harriman Fund Administration Services senior vice president Sean Tuffy says he is “cautiously optimistic” on a likely delay given the lack of time for the Commission to redraft its proposed rules ahead of a 31 December deadline.
He also says there is “a good argument” for aligning the Priips implementation with Mifid II.
Law firm CMS funds partner Cathy Pitt says delaying the implementation seems the only realistic option.
She says: “Implementation of the Priips regulation without the unifying technical standards would carry significant risk to both investors and firms and would not achieve the intended benefit of harmonising investor disclosure to enable comparison of different products.”