On October 22, the Economic and Monetary Affairs of the European Parliament (ECON) voted on the Regulation for a Key Information Document for investment products (formerly known as “PRIPs”). These new amendments proposed by MEP Sharon Bowles include the introduction of a complexity label for products deemed complex by the manufacturer as well as a fund calculator to help investors estimate the value of funds and the impact of any fees and expenses on investments. These labels are to be developed by ESMA, the European Securities and Markets Authority.
However, this implies further delays to the implementation of the KID legislation and can seriously harm small investors. EuroFinUse was cited in this weekend Financial Times' article and Mr. Guillaume Prache clearly stated that this is a very serious blow for investors, pointing out that “a key initiative to restore European citizens’ confidence in financial markets is now at risk”.
EuroFinUse believes the potential fallout caused by this delay to be very serious indeed.
Please read the Financial Times article here.