On Thursday 1 September, the MEPs of the committee on economic and financial affairs of the European Parliament are expected to adopt a draft resolution issuing a formal objection to the implementing measures tabled by the European Commission at the end of June to flesh out the content and methodology of the KID Key Information Document (EUROPE 11584).
The European Parliament "objects to the delegated act" and "calls on the Commission to submit a revised delegated act which takes account of the concerns" of the committee, according to a draft resolution of the EP dated Thursday 25 August of which EUROPE has had sight. Amongst other things, the text flags up the risk that investors may be treated differently and lists shortcomings in the methodology used for performance calculation.
"Most of the political groups tend increasingly to agree. Unless the European Commission comes forward with new proposals, there will be an objection", a parliamentary source confirmed on Monday 29 August. This source referred in particular to the fact that the GUE/NGL group has rallied behind the initial position taken by the EPP, ALDE and ECR groups before the summer break (EUROPE 11601). A number of members of the S&D group will also take this step, although French Socialist Pervenche Berès, rapporteur on the dossier, has not got behind the planned objection.
The formal objection, which must then be approved by the plenary session of the EP in September, may also include calls upon the Commission to tackle the issue of the entry into force, scheduled for January 2017, of Regulation 1286/2014 listing the pre-contractual information to be provided to consumers wishing to invest in certain retail financial products (EUROPE 11194). The aim of this move is to put the European ESMA authority back into play, the parliamentary source explained.
Last week, nine French professional associations from the financial sector argued that the proposals on the table could lead to opaque and misleading information aimed at retail investors. They also expressed concerns that the application deadlines were unrealistic. (Original version in French by Mathieu Bion)