European Parliament Votes to Object to PRIIPs Implementing Legislation
The European Parliament voted to object to draft regulatory technical standards (“RTS”) implementing the Packaged Retail and Insurance Investment Products (PRIIPs) Regulation (the “Regulation”) on 14 September 2016. The draft RTS set out detailed requirements for compliance, including the fundamental Key Information Document (“KID”) template. The RTS will now need to be re-drafted although it is unclear whether this can be done before the Regulation becomes operative on 31 December 2016.
Once the Regulation comes into force, PRIIPs KIDS will be required for all investment funds, insurance investment products and structured products sold to “retail investors” in the EEA, subject to an exemption for UCITS funds until 31 December 2019.