The European Parliament’s Economic and Monetary Affairs commitee has approved the motion by MEPs calling for changes to current rules on Priips key information documents in a bid to deliver greater transparency for retail investors.
The draft motion for resolution from the Econ committee, presented and voted for today, objects to proposed regulatory technical standards for retail investors set by the European Commission.
The motion will now pass to the wider European Parliament for debate on the 12 September as to whether the Commission and Council should redraft the current Priips standards.
Earlier, Money Marketing reported how objections were mounting over the way the Priips rules have been proposed by the European Commission.
These include providing details of past fund performance and a possible unlevel playing field between insurance-based products and other retail investments.
European Conservatives and Reformists chairman and London MEP Syed Kamall, who is among the leaders of the objection process says MEPs are not rejecting the principles behind the “rushed regulation” but are urging for more clarity and accuracy on the guidance.
Kamall says: “The committee would have preferred not to take this drastic step, but we have been hitting our head against a brick wall with the commission. These standards – as they stand – could hurt high street investors, like the millions of people who go into their bank to set up an Isa account.
“This is not a political decision. A cross-party group of MEPs has come together to say that technical standards need to be accurate. The commission has dismissed all opposition as industry lobbying but the industry also contains fund providers who support the principle of this legislation but have legitimate concerns. We have a responsibility to listen and question all parties involved.”