Brussels, 10/11/2014 (Agence Europe) - On Monday 10 November, the Council of the EU definitively adopted a regulation on pre-contractual information which must, from the end of 2016, be available to consumers wishing to invest in retail financial products (EUROPE 11052).
A document containing key information (nature, objectives, risks, commission received by financial intermediary) will be rolled out across the EU. Using this tool, individuals will be in a position to make an enlightened choice and compare similar products on offer. A quality label will also be brought in, to warn retail investors that they could be about to buy a complex and risky product, which may in the past have been at the root of cases of fraudulent sales.
The future regulation will not cover most deposit products, non-life insurance products or life assurance products for which the payout is made after death or in the event of an accident leading to disability. The same applies for pension regimes providing pension income and individual pension products for which an employer contribution is required. PRIIPs products, which are already covered by certain transparency requirements, will not be covered by the regulation for five years, during which time the European Commission will consider whether to extend this transitional period. (MB)