According to a document from the Council of the European Union, 23 out of 28 member states, including the United Kingdom, France, Germany and Ireland, backed a motion to push back the implementation date, originally scheduled for 1 January 2017, by one year to 31 December 2017.
The postponement will provide time to clarify questions remaining around the regulation, which will require the introduction of the key information document (Kid) – a three-page brochure designed to make it easier for retail investors to compare packaged retail and insurance-based investment products (Priips).
RTS rejected
The delay comes after 602 MEPs voted last week in favour of changing the current regulatory technical standards (RTS), arguing that the Kid could “mislead” retail investors in areas like performance.
“In light of the rejection of the Priips RTS by the EP, we call on the Commission to consider postponing only the application date of the Priips Regulation (thus without any change to any other provision of the level 1 Regulation),” read a statement submitted by the countries who backed the delay.
The list of countries which voted in favour of the deferment includes Germany, UK, France, Austria, Croatia, Sweden, Ireland, Slovenia, Lithuania, Cyprus, Romania, Finland, Denmark, Portugal, the Netherlands, Malta, Estonia, Hungary, Greece, Belgium, Latvia and the Czech Republic.
Speaking to International Adviser last week, John Beaney, the Association of the International Life Offices’ (Ailo) regulatory expert, said he expected the roll out of the Priips regulation to be postponed, while the European Commission (EC) renegotiate the terms of the RTS.
“It’s back with the commission now because the resolution was two-part, one to reject the RTS and secondly to postpone introducing the regulation,” said Beaney.
