The 'Priips' regulation (1286/2014), which lays down the pre-contractual information that retail investors may use to compare certain financial products, may not enter into force in January 2017.
The European Parliament and the Council of the EU may make a formal objection, between now and the end of September, to the adoption of the technical measures detailing the method and content of the KID pre-contractual information document, which is devised to guide investors in acquiring retail financial products.
On Wednesday 14 September, the Parliament is to discuss the issue and adopt the position of the competent parliamentary committee (see EUROPE 11614). "The objection is still of relevance", a parliamentary source said on Monday 12 September. This source explained that the document given by the European Commission to the MEPs to respond to their concerns proposes that the European financial supervisory authorities put together guidelines, particularly on the message ('comprehension alert') designed to alert individuals to the fact that they are preparing to invest in a potentially risky product. This document, of which EUROPE has had sight, also deals with the treatment of the credit risk for certain insurance products, unit-linked products and the methodology used to calculate a product's future performances.
The MEPs tasked by their political groups to negotiate this dossier will meet in Strasbourg this Tuesday. The outcome of this meeting is « unclear », Sven Giegold (Greens/EFA, Germany) said.
At the Council, more than a dozen member states – including Germany, Bulgaria, Cyprus, France, Greece, Hungary, Luxembourg, Portugal, the Czech Republic, the United Kingdom, Slovenia and Slovakia – are reported to be in favour of formally objecting to the Commission's technical standards, according to the same source. This decision may be forthcoming at the meeting of the ambassadors of the member states to the EU on Wednesday 21 September, and then confirmed at the Competitiveness Council onThursday 29 September.
A decision of the European Parliament and Council to issue an objection to the implementing measures of the Commission would make it harder for 'Priips' to enter into force in early 2017, due to the time the industry will need to adapt. This is not the preferred option of the rapporteur, Pervenche Berès (S&D, France). (Original version in French by Mathieu Bion)