Brussels, 28/06/2013 (Agence Europe) - Member states' representatives to the EU (Coreper) reached agreement in principle on Wednesday 26 June on the draft PRIPs regulation on pre-contractual information to be provided to retail consumers about financial products (see EUROPE 10647).
The regulation introduces a reader-friendly information document to be used throughout the EU to give consumers clear information about a financial product (type, aims, inherent risks and potential benefits) and past and expected performance. The document will also explain how a consumer can lodge a complaint. The document will be standardised to make it easier to compare products from one country to another.
The standardised document will need to be drawn up by investment funds, insurance companies and savings product suppliers.
Under the Council agreement, industry will have two years to comply with the future regulation (once it comes into force). Unit trusts and the like will have three further years to comply because they are already subject to harmonised rules under EU Directive 2009/65/EC on customer information. (MB/transl.fl)