On Monday 1 February, the investor associations BETTER FINANCE and the CFA Institute asked the European Commission to prioritise revision of the regulation on Packaged Retail and Insurance-based Investment Products (PRIIPs), instead of adopting new technical standards.
This month, the European Insurance and Occupational Pensions Authority (EIOPA) will again be called upon to give its opinion on the draft amendments to the Regulatory Technical Standards (RTS) on the Key Information Document (KID) for the PRIIPs. In July 2020, the EIOPA rejected the proposed amendments.
However, according to both organisations, it is “unacceptable and not in line with the spirit of Community law” to revise the so-called ‘Level 2’ rules before the ‘Level 1’ rules. They believe it would be better to address the problems related to the KID for the PRIIPs in a general revision of the regulation, following a thorough impact assessment and consumer testing.
In a document dated 28 January, Insurance Europe also called for a review of the regulation instead of a search for “quick fixes that would only damage consumer understanding”.
According to the organisation, the changes proposed in July - which the Commission is trying to reintroduce - include a confusing presentation of performance, inconsistent cost indicators and a significant administrative burden for insurance companies. (Original version in French by Marion Fontana)